How to Recover Investment Losses in BDCA
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended BDCA to investors. It is possible to recover investment losses through FINRA Arbitration.
Business Development Corporation of America (“BDCA”) is a non-traded business development company that invests in first and second lien senior secured loans and mezzanine debt issued by middle market companies.
The company’s estimated net asset value was $8.58 per share as of September 30, 2016, or $0.39 per share lower than the valuation as of December 31, 2015. Additionally, the share repurchase program is oversubscribed. Repurchases are only made semi-annually. Thus, it is unlikely that you would be able to sell your entire investment through BDCA’s repurchase program.
Unfortunately for investors, CFX Trading, a secondary market for private placements, is listing shares of BDCA for just $6.49 per share. That’s significantly less than the original purchase price.
Update on May 1, 2019
Currently shares of BDCA are listed for sale on Central Trade & Transfer, a secondary market for private placements, for just $5.75 per share. The original offering price was $10.00 per share.
BDCA – A Suitable Investment for You?
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience.
If your broker dealer fails to adequately disclose risks or make unsuitable investment recommendations, they can be held liable for investment losses in a FINRA arbitration claim.
FINRA Arbitration and mediation are two distinct ways of resolving securities and business disputes between and among investors, brokerage firms and individual brokers, and offer a prompt and inexpensive means of resolving issues.
If you have suffered losses investing in BDCA, the securities attorneys at The White Law Group may be able to help. To speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. To learn more about The White Law Group visit www.whitesecuritieslaw.com.