Concerned about your investment in DeMarcay Development Preferred Partners?
Are you concerned about your investment in DeMarcay Development Preferred Partners? If so, the securities attorneys at 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.
GK Development, Inc. operates as a commercial real estate firm. The Company reportedly acquires, develops, owns, and operates a diversified portfolio of commercial and retail properties.
According to SEC filings, the company filed a Form D to raise capital from investors in 2018 for the offering DeMarcay Development Preferred Partners. According to the filings, the offering type was equity and pooled investment fund interests and the total offering amount was reportedly $15,000,000. The sales compensation recipient was purportedly Arete Wealth Management.
High Risk Alternative Investments
The White Law Group is investigating potential securities claims involving FINRA registered brokerage firms who may have unsuitably recommended alternative investments such as DeMarcay Development Preferred Partners to investors.
These alternative investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors. They often have high fees and sales commissions, making them an attractive product for financial advisors to sell. According to the Form D, estimated sales commissions and fees paid for sales of this particular offering are 9%.
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.
Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you are concerned about your investment in DeMarcay Development Preferred Partners, the White Law Group may be able to help you. To speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.
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.