TEI Diversified Income & Opportunity Fund III – Securities Investigation
Are you concerned about your investment in TEI Diversified Income & Opportunity Fund III? 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.
Time Equities Inc. is a real estate investment, development, and asset and property management firm that sponsors private placement offerings and custom 1031 exchanges.
The company closed its offering, TEI Diversified Income & Opportunity Fund III in May after raising approximately $70 million of capital for acquisitions throughout the U.S. and select Western European countries.
Time Equities often raises money for investments through Reg D private placement offerings like the company did for TEI Diversified Income & Opportunity Fund II and TEI Diversified Income & Opportunity Fund III. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
According to the Form D, the 8.47% in sales commissions in this offering “Includes Selling Commissions, Placement Fees, Market and Due Diligence Allowance Fees and Wholesaling Fees.”
The Risks of Investing in Reg D Private Placements
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products like TEI Diversified Income & Opportunity Fund II and TEI Diversified Income & Opportunity Fund III to their clients.
Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you are concerned about your investment in TEI Diversified Income & Opportunity Fund III or another private placement investment and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.
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, visit https://www.whitesecuritieslaw.com.