December 8, 2020 Comments Off on Deeproot Growth Runs Deep Fund LLC Securities Investigation Blog, Current Investigations

Deeproot Growth Runs Deep Fund LLC Securities Investigation

Deeproot Growth Runs Deep Fund LLC Securities Investigation, featured by top securities fraud attorneys, The White Law Group

Concerned about your investment in Deeproot Growth Runs Deep Fund LLC? 

*UPDATED* September 2021  

Are you concerned about your investment in Deeproot Growth Runs Deep Fund LLC? If so, The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 

Deeproot Growth Runs Deep Fund LLC has a portfolio of life insurance settlements, or sales to third parties of existing life insurance contracts held on insurers who are at least 70 years old, according to filings with the SEC. The fund reportedly buys contracts from various insurance companies for less than the net death benefits and doesn’t include policyholders who are terminally ill. 

*Update* On August 20, 2021, the Securities and Exchange Commission reportedly charged an investment advisor and Deeproot Funds LLC, along with Policy Services Inc., with defrauding nearly 300 investors out of $58 million.  

Deeproot and the advisor allegedly convinced investors, many of whom were retirees, to cash out annuities and individual retirement accounts they held with other investment companies and invest in two Deeproot funds, Deeproot 575 Fund, LLC and the Deeproot Growth Runs Deep Fund, LLC. according to the SEC’s complaint. 

The company, based in San Antonio, Texas, reportedly filed a form D to raise capital from investors in 2018. The total offering amount sold was purportedly $11,751,505 and the sales fees were estimated at close to 7% of the total offering amount sold. 

Reg D private placements are typically sold by brokerage firms in exchange for a large up-front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%. 

The trouble with alternative investment products, like Deeproot Growth Runs Deep Fund LLC, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. 

Investigating Potential Securities Claims 

The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements like Deeproot Growth Runs Deep Fund LLC. 

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience. 

Unfortunately, sometimes financial advisors may misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks. 

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be found liable for investment losses in a FINRA arbitration claim. 

Filing a Lawsuit against your Brokerage Firm 

For more information on the firm’s investigation, please see:

Deeproot Funds LLC Charged with $58 Million Fraud

Deeproot 575 Fund LLC Lawsuits Investigation – Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Deeproot Growth Runs Deep Fund LLC or another private placement investment, please contact 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. The firm represents investors throughout the country in claims against their brokerage firm. 

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com. 

  

 

Comments are closed.