Illiquid Investment – ATEL 12 LLC
Have you suffered losses investing in ATEL 12 LLC? If so, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
According to the prospectus, ATEL 12, LLC will acquire a diversified portfolio of leased equipment, equipment financing transactions and other investments, with an emphasis on low-technology equipment leased to major corporations. The Fund will collect lease payments and other revenues and eventually sell the leased equipment and other portfolio investments.
The purchase of ‘units” in a Limited Liability Company (LLC) are considerably more risky than traditional investments such as stocks, bonds, or mutual funds. Unfortunately brokers may not have adequately explained the risks and liquidity problems to investors.
The risk factors listed on ATEL 12 LLC’s prospectus include no guarantee of distributions or return of your capital investment. The investment is also illiquid. “No market exists for the Units or is expected to develop, the Fund’s Operating Agreement includes significant restrictions on the transferability of Units, and an investor may be unable to sell his Units or able to sell the Units only at a significant discount.”
Bad News for Investors
Shares of ATEL 12 LLC were recently listed on Central Trade and Transfer, a secondary market for private placements, for just $1.06/share. This is unfortunate for investors since the original offering price was $10.00/share.
According to the prospectus, brokers can earn 9% in sales commission on ATEL 12 LLC. This may provide some brokers with enough incentive to push the product to unsuspecting investors. Additionally, some brokers may have downplayed the risks associated with the purchase of LLC units and misled investors into thinking that they were “safe” investments.
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 in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you suffered investment losses in ATEL 12 LLC, the securities attorney at The White Law Group may be able to help you. For a free consultation with a securities attorney please call the offices of The White Law Group at 1-888-637-5510.
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 Vero Beach, Florida.
To learn more about the firm, please visit www.WhiteSecuritiesLaw.com.