Investigating Potential Claims – AEI Accredited Investor Fund V
The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements like AEI Accredited Investor Fund V.
AEI Funds are created for investors seeking the opportunity for stable income, low volatility, reduced risk, and capital appreciation, according to their website.
AEI Capital Corporation often raises money for investments through Regulation D private placement offerings like the company did for AEI Accredited Investor Fund V. Reg D private placements are typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The trouble with private placement investments, like AEI Accredited Investor Fund V, is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Are Private Placement Investments Suitable for you?
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They need to ensure that each investment recommendation is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
High sales commissions and due diligence fee may offer enough incentive for brokers to push the product to unsuspecting investors who do not fully understand the risks of these types of investments. Some brokers may even misrepresent the basic features of the products –focusing on the income potential and tax benefits while downplaying the risks.
Another problem with private placement investments is they are illiquid. When investors are ready to sell, it is often difficult to find a buyer, and when they do it is usually at a loss.
According to Central Trade and Transfer, a secondary market for private placements, shares of AEI Accredited Investor Fund V are currently listed for just $6.50/share. This appears to be much lower than the original offering price.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
Have you suffered investment losses in AEI Accredited Investor Fund V? If so, The White Law Group may be able to help you recover your losses. It is possible to file a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. Please contact The White Law Group at 1-888-637-5510 for a free consultation with a securities attorney.
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 Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.