STG Group – Securities Investigation
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements, like STG Group, to investors.
STG Group, Inc. formerly known as Global Defense & National Security Systems, Inc., provides cyber, software, and intelligence solutions to the U.S. government organizations and commercial businesses.
According to SEC filings, the company filed a Form D in 2015 in Reston, Virginia. The total offering amount was $113,146,436.00.
Regulation D private placement investments such as these are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The problem with private placement investments such as STG Group 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. These investments may seem wise at first, until the dramatic drop in distributions.
Is a Reg D Private Placement Investment suitable for you?
Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you have concerns regarding your investment in STG Group and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.