Have you lost money in Cawley Fund I, LLC? If so, The White Law Group may be able to help you recover your investment loss through a FINRA dispute resolution claim.
According to a Form D filed with the SEC, Cawley Fund I was launched in Dallas, Texas in 2007. The note was sold to investors as a private placement offering, and attempted to raise $10 million. In addition, the Form D indicates that the Cawley Fund I offered a 7% commission to broker dealers that sold the investment.
Private placements are not publicly traded investments. This type of investment opportunity is often used by small start up companies to raise capital. Private placements are not required to register with the Securities and Exchange Commission (SEC) so long as they comply with industry rules. As such, they lack the same regulatory oversight as other investments and carry considerably higher risks than stocks sold on a public market like the New York Stock Exchange.
Unfortunately, the high commissions associated with private placements, like the Cawley Fund I, sometimes provides enough incentive for broker dealers to overlook suitability requirements when selling the investments to their clients. Private placements are high risk and illiquid investments intended for sophisticated and institutional investors. They are not appropriate for most investors.
Broker dealers are required by the Financial Industry Regulatory Authority (FINRA) to sell private placements only to accredited investors that meet suitability standards. The investors’ age, risk tolerance, net worth, investment experience and a number of other factors should be taken in to consideration to in order to determine whether a particular investment recommendation is suitable. Broker-dealers that overlook FINRA suitability requirements can be liable for investment losses through FINRA arbitration.
If you suffered significant losses and want to learn more about your litigation options against the broker-dealer that sold you a Cawley Fund I, please contact the securities attorney of The White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.