Monthly Archives: October 2020

Atlas Growth Partners LP Investment Losses

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Atlas Growth Partners LP Investment Losses, featured by top securities fraud attorneys, The White Law GroupAtlas Growth Partners LP Shareholders may have Claims

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Atlas Growth Partners, LP to investors.  

Atlas Growth Partners LP is a Delaware limited partnership and an independent developer and producer of natural gas, crude oil and NGLs with operations primarily focused in the Eagle Ford Shale in south Texas, according to filings with the SEC. The limited partnership is sponsored by  Atlas Energy Group, LLC (“ATLS”), a Delaware limited liability company.

The company reportedly filed a form D private placement to raise capital from investors in 2015. According to the Form D, the total offering amount was purportedly $500,000,000 with an estimated $50,000,000 paid in sales commissions and fees.

Alternative investments such as these, have high sales commissions and due diligence fees. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may even focus on the income potential and tax benefits while downplaying the risks.

Unfortunately for investors, many oil and gas LPs are struggling to make distribution payments and some may end up defunct.

Filing a Complaint against your Brokerage Firm

Broker dealers that sell private placements are required to perform adequate due diligence on all investment recommendations. They must 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.

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. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.

If you are concerned about investment losses in Atlas Growth Partners LP or another oil and gas LP, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection 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, please visit www.whitesecuritieslaw.com.

New York City REIT, Inc. (NYC) Investment Losses

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New York City REIT, Inc. (NYC) Investment Losses, featured by top securities fraud attorneys, The White Law GroupAR Global’s New York City REIT Lists on NYSE

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended New York City REIT, formerly known as ARC New York City REIT, to investors.

New York City REIT, Inc., formerly known as ARC New York City REIT, is a non-traded real estate investment trust that owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City, particularly Manhattan, according to its website.

On August 18, New York City REIT listed its class A common stock on the New York Stock Exchange under the symbol “NYC.”

The class A shares represented 25% of NYC’s outstanding common stock. Every 120 days after the listing, an additional 25% of NYC’s stock represented by class B common stock will convert into class A common stock, concluding with all shares listed and freely tradeable within 360 days.

According to filings with the SEC, the board reportedly approved a 2.43-1 reverse stock split that would cause the total number of shares to decrease 2.43 times as compared to the total number of shares outstanding, which was roughly 31 million as of June 30th.

The board also noted that they will be reinstating distributions which will be paid as dividends in arrears on a quarterly basis to holders of record on a single quarterly record date, “with the first dividend paid in October 2020 in a partial quarterly amount covering the period from the date on which shares commence trading on the NYSE through September 30, 2020.”

Although the REIT’s current NAV per share is $20.26/share as of June 30, 2019, investors may have reason for concern due to declining secondary market prices.

On December 9, 2019, Mackenzie Realty Capital, Inc. extended an offer to purchase shares of New York City REIT, Inc. at a purchase price of just $10.05/Share. The initial offering price of New York City REIT was $25.00/share.

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

High commissions could be a motivating factor for unscrupulous financial advisors to sell non-traded REITs regardless of whether the investment is in line with the client’s investment objectives and profile. Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.

Filing a Complaint against your Brokerage Firm

If you are concerned about your investment in New York City REIT, you may be able to file a complaint against your brokerage firm. Please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

EquiAlt LLC Charged with Alleged Ponzi-scheme

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EquiAlt LLC Charged with Alleged Ponzi-scheme, featured by top securities fraud attorneys, The White Law Group

EquiAlt LLC Charged with Alleged Ponzi-scheme

SEC Reportedly Charges EquiAlt LLC and Execs Executives with Defrauding More Than 1,000 Retail Investors

The White Law Group is investigating potential securities fraud claims involving broker dealers and sales agents who may have unsuitably recommended EquiAlt to investors.

On February 18, 2020, the Securities and Exchange Commission (SEC) announced an emergency enforcement action and a temporary restraining order and asset freeze against EquiAlt LLC, its CEO, and its Managing Director, in connection with an alleged fraudulent unregistered securities offering that raised more than $170 million from at least 1,100 investors, a number of whom invested their retirement funds, according to a press announcement.

According to the SEC’s complaint, EquiAlt, and the two execs, allegedly raised millions of dollars by making material misrepresentations to investors about EquiAlt’s investment strategy, the financial condition of the investments, and the uses of investor proceeds.

The defendants allegedly told investors they would pool investor funds and use approximately 90% of the money to purchase under-valued real estate, rent or flip the properties, and pay investors 8-10% annual interest generated from the real estate investments. Instead, the SEC alleges, investor money went to support the two execs’ lavish lifestyle, and less than 50% of the funds raised were used to invest in properties.

Further, money from one investment fund controlled by EquiAlt was allegedly used to make Ponzi-like payments to investors in another fund.

Brokerage firms and RIAs are required to perform due diligence on any offering they recommend. They must ensure that all recommendations are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.

If a firm fails to perform due diligence or makes an unsuitable recommendation, a broker-dealer can be held responsible for any losses in a FINRA arbitration claim and an RIA can be held responsible either in a private arbitration or in court.

Filing a complaint against your Brokerage Firm

If you are concerned about your investment in EquiAlt LLC, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation with a securities attorney.

The White Law Group is a national securities fraud, securities arbitration, and investor protection 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.

 

 

 

Ecoark Holdings Inc.(OTCQX: ZEST) & Zest Labs Investment Losses

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Ecoark Holdings Inc.(OTCQX: ZEST) & Zest Labs Investment Losses, featured by top securities fraud attorneys, The White Law Group

Recovery of Investment Losses in Ecoark Holdings Inc. (OTCQX: ZEST)

ZEST Shareholders may have claims.

Have you suffered losses investing in Ecoark Holding Inc. (ZEST)? The White Law Group is investigating potential securities fraud claims involving FINRA-registered broker dealers who may have unsuitably recommended Ecoark Holdings (ZEST) to investors.

According to its website, Ecoark Holdings, Inc. reportedly engages in “the development of solutions that reduce food waste, improve delivered freshness and product margins for fresh and perishable foods” through its subsidiary, Zest Labs.

Brokerage firms and RIAs are required to perform due diligence on any offering they recommend. They must ensure that all recommendations are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.

If a firm fails to perform due diligence or makes an unsuitable recommendation, a broker-dealer can be held responsible for any losses in a FINRA arbitration claim and an RIA can be held responsible either in a private arbitration or in court.

Filing a complaint against your Brokerage Firm

If you have suffered losses investing in Ecoark Holdings (Zest Labs), the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation with a securities attorney.

The White Law Group is a national securities fraud, securities arbitration, and investor protection 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.

NorthStar Healthcare Income REIT Investment Losses

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NorthStar Healthcare Income REIT Investment Losses, featured by top securities fraud attorneys, The White Law GroupNorthStar Healthcare Income Inc., Shareholders may have Claims

The White Law Group is investigating potential FINRA lawsuits involving broker dealers who may have unsuitably recommended non-traded REITs such as NorthStar Healthcare Income, Inc. to investors.

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as NorthStar Healthcare Income Inc., may have understated or misrepresented the risks and liquidity problems.

The Net Asset Value ( NAV) continues to decline as does the secondary market sales price. As recently as September 24, shares of NorthStar Healthcare Income sold for just $1.20 per share, according to Central Trade and Transfer. The original offering price for the REIT was $10.00 per share.

This comes after the REIT suspended its SRP in October 2018 and suspended distributions in February 2019. Investors are questioning if and when they will be able to get their money back.

Risks of Non-Traded REITs

Non-traded real estate investment trusts (REITs) are complex and inherently risky products. Unfortunately for investors, many REITs have taken a hit due to the Covid-19 global pandemic, and some have suspended distributions during this  uncertain time.

Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling  REITs – as high as 15%.  In addition to the high risks, non-traded REITs often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Filing a Complaint Against your Brokerage Firm

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

High commissions could be a motivating factor for unscrupulous financial advisors to sell non-traded REITs regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.

Free Consultation with a Securities Attorney

If you are concerned about your investment in NorthStar Healthcare Income Inc., you may be able to file a complaint against your brokerage firm. Please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.