Securities Investigation – Blue Earth Inc.
Are you concerned about your investment in Blue Earth Inc.? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Blue Earth Inc. is an alternative/renewable power generation solutions company.
The company filed voluntary petitions for reorganization via Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for Northern District of California, San Francisco Division in 2016.
The sole other entity filing is Blue Earth Tech, Inc., which employs the Company’s operating personnel. No other subsidiaries are included as Chapter 11 debtors and were not expected to be impacted by the filing.
Blue Earth noted that it has reached an agreement with Jackson Investment Group, LLC (“JIG”), a senior lender and a principal shareholder of the Company which declared a default on March 1, 2016 now equal to approximately $21.75 million6 principal amount of indebtedness (plus all accrued and unpaid default principal amounts), interest (including default interest), expenses and fees (including late fees) to provide necessary financing in order to restructure the Company’s operations.
According to SEC filings, Blue Earth Inc. filed a Form D to raise capital from investors in 2013 in Henderson, NV. The total offering amount was $14,471,891.
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 Blue Earth Inc. is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Investigating Potential Claims
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements, like Blue Earth Inc. to investors.
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 Blue Earth Inc. 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, visithttps://www.whitesecuritieslaw.com.