Securities Investigation – Legion Capital Corp.
The White Law Group is investigating potential securities claims involving broker dealers and financial advisors who may have unsuitably recommended Legion Capital Corp. to investors.
Legion Capital Corporation is a private equity and venture capital firm specializing in making direct investments, according to Bloomberg. The firm reportedly invests in early, small, medium, emerging growth companies and is involved in bridge funding, buyouts, acquisition, development, and growth capital transactions.
Alternative investments such as Legion Capital Corp. are generally speculative, high-risk investments and due to these risks are often unsuitable for many investors. Despite the risks of investing in alternative investments, some brokerage firms still push this type of investment because of the high commissions associated with their sale and creation.
Since they are not traded on any exchange, private placement offerings are typically illiquid investments. There are often legal or contractual restrictions on your ability to transfer your holdings, and even if sale of your holdings is permitted there may be no buyers. You may need to hold these securities for an indefinite period of time.
Often companies that issue unlisted securities may provide limited information regarding their ongoing operations and financial condition.
While some private placement investments may make periodic distributions, others may not make any. Brokerage firms have a responsibility to adequately disclose all risks before selling any investment and must consider suitability factors such as age, financial needs, and risk tolerance to name a few. Firms that do not perform adequate due diligence on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.
Filing a Complaint against your Brokerage firm
If you are concerned about an investment in Legion Capital Corp., the securities attorneys at The White Law Group may be able to help you by filing a complaint against your brokerage firm. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
For more information on Reg D private placement investments 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 and Seattle, Washington.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.