Securities Investigation – Spherix Inc.
Are you concerned about your investment in Spherix Inc.? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
According to a company press release, Spherix Incorporated was launched as a scientific research company. “Spherix is committed to advancing innovation by active participation in the patent market. Spherix draws on portfolios of pioneering technology patents to partner with and support product innovation.” The company reportedly changed its name from Biospherics Inc. in 2000.
Spherix Inc. filed a Form D to raise capital from investors in 2014 in Bethesda, MD, according to filings with the SEC. The total offering amount sold was $4,446,081. The minimum investment amount accepted from an outside investor was $7,500.
Regulation D private placements are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%. For Spherix Inc., the sales commissions were a hefty 10% of the offering price.
The problem with private placement investments such as Spherix Inc. is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Free Consultation with a Securities Attorney
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements, like Spherix Inc. to investors.
Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you have concerns regarding your investment in Spherix Inc. and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
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 White Law Group and its representation of investors in FINRA arbitration claims, visithttps://www.whitesecuritieslaw.com.