American Growth Funding II – Securities Fraud Investigation
Are you concerned about your investment in American Growth Funding II? 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.
According to a press announcement last week, the Honorable Kimba M. Wood of the United States District Court for the Southern District of New York reportedly entered judgments against a Manhattan-based lending company, American Growth Funding II LLC (AGF II), and its owner.
The fund and its owner were purportedly charged by the SEC in February 2016 with allegedly lying to investors who purchased AGF II’s high-yield securities.
The SEC’s complaint alleged, among other things, that between March 2011 and December 2013, AGF II and its owner falsely claimed that AGF II’s financial statements were being audited each year.
The complaint also alleged that AGF II made misrepresentations in its offering documents about its management and concealed details about deteriorating loan values that could imperil full payment of the promised returns to investors.
According to SEC filings, the company filed a Form D to raise capital from investors in 2016 in New York, NY. The total offering amount was $50,000,000.
Update on May 16, 2019
Jurors in Manhattan federal court reportedly returned a guilty verdict against Portfolio Advisors Alliance Inc. and two of its executives.
The jury reportedly found Portfolio Advisors Alliance, and two executives liable on all counts, finding that they violated the certain antifraud provisions of Securities Acts of 1933 and 1934.
Investigating Potential Claims
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending American Growth Funding II to investors.
American Growth Funding II is a Regulation D private placement investment. 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 American Growth Funding II 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.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding your investment in American Growth Funding II 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.