Investigating Potential Lawsuits – American Hospitality Properties Fund I
Are you concerned about your investment in American Hospitality Properties Fund I, LLC? 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.
Phoenix American Hospitality (PAH) is reportedly an opportunistic hotel fund manager that believes that “the current economic and real estate environment has created acquisition opportunities in select markets,” according to its website. The company reportedly purchases hotels in areas where anticipated new construction is difficult due to high construction costs, availability of top-tier franchises have already been identified and future hotel zoning sites do not present competition.
The company filed a form D to raise capital from investors with the offering American Hospitality Properties Fund I in 2013. The total amount of the offering sold was purportedly $25,000,000. The sales commissions and fees were estimated at 10% of the offering amount.
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 Hospitality Properties Fund I 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 improperly recommending high-risk private placements to investors.
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 Hospitality Properties Fund I 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 is a national securities fraud, securities arbitration, and investor protection 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.