Securities Investigation – GrowCo Partners I LLC
Are you concerned about your investment in GrowCo Partners 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.
GrowCo Inc., a Denver-based marijuana greenhouse developer, is reportedly filed for bankruptcy on January 30, after raising more than $15 million from investors.
According to Denver news site BusinessDen, GrowCo owes at least $8.6 million to roughly 50 creditors.
The company has filed a Form D to raise capital from investors for the offering GrowCo Partner I, according to SEC filings. 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%.
According to filings with the SEC, GrowCo Partners I LLC filed a Form D in 2014 in Denver, CO.
Private placements investments are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.
Is a Private Placement Investment Suitable for you?
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements, like GrowCo Partners I LLC, to their clients.
Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
Are you concerned about your investment in GrowCo Partners I LLC? If so, The White Law Group may be able to help. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
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.