Concerned about your investment in Empire Residential Communities Fund III?
Are you concerned about your investment in Empire Residential Communities Fund III? The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended high risk private placement investments such as this one.
The Empire Group of Companies develops real estate in the greater Phoenix metropolitan market, according to the company’s website. One project, the Empire Residential Community Funds is “a family of value-added real estate funds,” that is reportedly focused on purchasing and entitling residential infill land, with the end product being turnkey single and multifamily projects that can be sold to residential builders, according to its website.
The company reportedly filed a form D to raise capital from investors in 2016 for the offering Empire Residential Communities Fund III. The type of investment is purportedly limited liability company units in real estate. The total offering amount sold was purportedly $32,876,985, according to the SEC filing.
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%. In this particular investment, the sales commissions and fees are estimated at more than 8% of the offering amount.
The problem with alternative investments such as Empire Residential Communities Fund III is that they often involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. Lack of Liquidity can also be a problem for investors.
Potential Lawsuits to Recover Financial Losses
Despite the risks of investing in alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation. If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration.
FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Free Consultation with a Securities Attorney
If you have concerns regarding your investment in Empire Residential Communities Fund III or another Empire fund, The White Law Group may be able to help you. To speak with a securities attorney about your options, please call the office at 888-637-5510 for a free consultation.
For more information on the firm’s investigation, please see:
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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.