June 23, 2017 Comments (0) Current Investigations

Recovery of Investment Losses in BDCA


Investigating Potential Claims Involving BDCA

Have you suffered investment losses in Business Development Corporation of America (a/k/a BDCA)? If so, the securities attorneys of 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.

BDCA is a non-traded business development company that invests in both the debt and equity of private middle market companies.

Latest filings with the SEC

Business Development Corporation of America’s 2017 annual meeting of stockholders was originally called to order on May 19, 2017 and was adjourned in order to permit additional time to solicit stockholder votes with respect to certain proposals. The Annual Meeting was reconvened on June 7, 2017 and June 22, 2017.

On June 22, 2017, one proposal was approved, but the Company adjourned the Annual Meeting with respect to the six proposals yet to be approved by stockholders, which are discussed in detail in the Company’s definitive proxy statement filed with the Securities and Exchange Commission. The reconvened Annual Meeting will be held on July 5, 2017.

The Trouble with Alternative Investments

The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling high-risk private placements like BDCA and BDCA II.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to 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.

Unfortunately, the problem with Reg D private placements is that they typically have  high sales commissions and due diligence fees. This provides brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential 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.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of BDCA or BDCA II, please contact The White Law Group at 1-888-637-5510 for a free consultation.

For more information on The White Law Group’s investigation see First Warning Sign for investors?

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. 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.



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