Empire Village at Olive Marketplace LLC, Securities Investigation

Are you concerned about your investment in Empire Village at Olive Marketplace LLC? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 

According to its website, the Empire Group of Companies develops real estate in the greater Phoenix metropolitan market.  

The company raises money through Reg D private placement offerings like the company did for the real estate investment Empire Village at Olive Marketplace.  These Reg D private placements are then 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%. 

According to the form D, filed in 2019, the total offering amount was purportedly $25,000,000. In this particular offering, the sales commissions and fees were estimated at more than 8% of the total offering amount.  

The Risks of Investing in Alternative Investments 

The trouble with alternative investment products, like Empire Village at Olive Marketplace, 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. 

The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placement investments like Empire Village at Olive Marketplace 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. 

However, another problem with Reg D private placements is the high sales commissions and due diligence fees the brokers earn.  Brokers have an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments. They can easily 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. 

Recovery Options for Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Empire Village at Olive Marketplace LLC or another private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation. 

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

Investor Alert: Empire Residential Communities Fund II 

Regulation D Private Placement Fraud Attorneys 

 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.