Securities Investigation – ATEL 15 LLC – Recover your Losses
Are you concerned about your equipment leasing investment ATEL 15 LLC? If so, the securities attorneys at The White Law Group may be able to help you.
According to its prospectus, ATEL 15, LLC, or the “Fund,” 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 payments from its customers and other revenues and eventually sell the leased equipment and other portfolio investments. The Fund’s objective will be to distribute to investors the net revenues from its investments after it pays its expenses and fees.
Unfortunately, the purchase of units in a leased equipment fund such as ATEL 15 LLC is risky venture for investors. Financial advisors may not always adequately explain these risks as they can earn high commissions on these products. In this particular case, the sales commissions were 9% for the broker or financial advisor.
Another problem with alternative investments such as ATEL 15 LLC, is that they are highly illiquid. As the prospectus states, “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
Further, alternative investments such as ATEL 15 LLC, are highly illiquid. As the prospectus states, “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.”
Shares of ATEL 15 LLC have recently sold on Central Trade and Transfer, a secondary market for private placements, for just $3.87/share. This may be bad news for investors since the original offering price was $10.00/share.
Brokerage firms have a responsibility to 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 15 LLC or another ATEL offering, the securities attorneys at The White Law Group may be able to help you through FINRA arbitration. 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 firm, please visit www.WhiteSecuritiesLaw.com.