Investigating Claims Involving Priority Income Fund, Inc.
The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended Priority Income Fund, Inc. to investors.
Priority Income Fund Inc., an illiquid, closed-ended mutual fund, invests at least 80% of total assists in securitized pools of senior secured loans and/or investing in senior secured loans in the primary or secondary markets, according to the prospectus.
The fund invests in equity and junior tranches of collateralized loan obligations (“CLOs”), which may be riskier than a direct investment in the underlying companies. CLOs will typically have no significant assets other than their underlying Senior Secured Loans.
These shares are not currently listed on any securities exchange, and according to the prospectus, there isn’t a public market for them to develop in the foreseeable future, if ever.
Unfortunately this means that stockholders can’t “sell their shares promptly or at a desired price. No stockholder will have the right to require us to repurchase his or her shares or any portion thereof. Because no public market will exist for our shares, and none is expected to develop, stockholders will not be able to liquidate their investment prior to our liquidation or other liquidity event, other than through our share repurchase program, or, likely in limited circumstances, as a result of transfers of shares to other eligible investors,” according to the prospectus.
Further, the Fund’s investment strategy reportedly involves investments in securities issued by foreign entities, which will expose investors to risks not typically associated with investing in U.S. securities.
Filing a Complaint against your Brokerage Firm
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 diligences on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.
If you are concerned about an investment in Priority Income Fund Inc., 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.
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 firm, please visit https://www.whitesecuritieslaw.com.