The lawyers of Haselkorn & Thibaut are exploring potential sales practice and supervision claims pertaining to HMS Income Fund. The experienced team at Haselkorn & Thibaut represents investors nationwide in pursuing personal Financial Industry Regulatory Authority (FINRA) client disputes and helping customers recover their investment losses.
It is alleged that HMS Income Funds was a private placement investment. These types of investments are complicated, risky, illiquid investments that typically paid a comparatively large commission to financial advisors creating the recommendation for retail investors to obtain this safety investment. The current (April 2020) sponsor said value is $7.90/share.
However, the secondary market pricing is nearer to $5.25/share to $5.50/discuss. See Central Trade and Move Auctions. This may signify a close 40%-50% possible decline in principal for some investors.
HMS Income Fund investors are encouraged to visit investmentfraudlawyers.com or call 1-888-628-5590 for a free case review by Haselkorn & Thibaut.
HMS Income Fund is a non-traded business development company (BDC). The last stated estimated value from the host was recorded at $6.25/discuss, although the most recent trading range reported by a secondary market supply was at the $2.15/talk to $2.35/share array. Visit Central Trade and Transfer. For most investors, this can be a significant drop from the $10.00/discuss original sale price. It should be noted this pricing information is mainly before the effect of the most recent market events.
Sierra Income Corporation – The final stated estimated value from the sponsor was listed at $5.78/share, while the most recent trading range reported by a secondary market source was in the $2.15/share to $2.40/share array. See Central Trade and Transfer. For most investors, this is a big drop in the $10.00/discuss original sale price. It should be noted this pricing information is mostly before the impact of the latest market events.
FS Energy and Power Fund – Although the most recent sponsor stated value is $5.43/share, the most recent trading range reported by a secondary market supply was $1.50/discuss to $1.70/discuss. Visit Central Trade and Move. BDCs typically make investments in creating businesses and firms, in this example, in the electricity and power market. The first share price was $10.00/talk. Therefore investors liquidating at the present price levels are realizing that a substantial reduction. It should be noted this pricing information is mainly before the impact of the latest market events. Visit Central Trade and Transfer. This is a non-traded business development company (BDC). BDCs generally make investments in developing companies and companies.
The original share price was $10.00/discuss, so investors liquidating at the present price levels might be realizing a considerable reduction. The above pricing doesn’t account for the recent market impact from the first quarter of 2020.
FS KKR Capital Corp. II – The latest sponsor stated value is $7.36/discuss, the newest trading range reported with a secondary market source was $3.25/share to $3.52/discuss. Visit Central Trade and Transfer. BDCs typically make investments in developing businesses and companies. The above pricing doesn’t account for the current market impact from the first quarter of 2020.
Business Development Corporation of America (BDCA) – Although the most recent sponsor said value is $7.69/share, the latest trading range reported by a secondary market source was $4.15/discuss to $4.50/discuss. Visit Central Trade and Move. This non-traded business development company (BDC). BDCs generally make investments in creating businesses and companies. This BDC invests in second and first lien senior secured loans and mezzanine debt issued by mid-market companies. In 2017, investors may also recall there was a previous offer by Mackenzie Capital Management offering $6.00/discuss.
CION Investment Corporation – Although the latest sponsor stated value is $7.50/discuss, the most recent trading range reported by a secondary market supply was $4.25/discuss to $4.506/discuss. See Central Trade and Move. Many investors might have been triggered by the promises of a 7.65% yearly distribution, and a few financial advisors and broker-dealer companies offering this and comparable investors didn’t always correctly disclose the material risks associated with these investments or product structures as they generally involve a high level of danger and they are usually illiquid. It is also noteworthy for investors that in March 2017, the Managing Director and Chief Credit Officer resigned from CION Investment Corporation.
CIM Real Estate Finance Trust (Cole IV) – CIM Real Estate Finance Trust was previously Called Cole Credit Property Trust IV. This non-traded REIT was allegedly planning to reposition its portfolio into commercial mortgage loans and was planning to sell off purchasing assets to achieve that. The way the first quarter of 2020 has impacted that business plan or the pricing under is still known. In a recent letter to investors, Mackenzie Realty Capital, Inc. was offering $4.79/talk to investors upward until 12/30/19. The REIT estimates share value at a stated price of $7.77/discuss. Notwithstanding those quotes, the latest trading range recorded by a secondary market supply was in the $4.85/talk to $5.05/share on Central Trade and Transfer.
Problems With Private Placements
Private placement products are also referred to as “Direct Participation Products” contain products like non-traded business development companies (BDCs), non-traded REITs, gas and oil offerings, equipment leasing goods, and other alternative investments. These alternative investments rarely produce profits for investors and are often misrepresented or just unsuitable for many retail investors due to their illiquidity, high prices, and price structure. Financial advisers selling these goods are usually paid higher than the typical commission to be able to induce them to hype these otherwise inferior superior investments, thus producing an artificial market for those investments.
Financial advisors and the companies they work for that supervise the approval and sale of such products have a responsibility to treat investors fairly. This often includes making appropriate investment recommendations, placing investor’s interests before their interests, and doing this after conducting reasonable and proper due diligence. Due diligence typically contains an independent investigation by the company into the investment’s underlying company, its attributes such as its benefits, risks, taxation implications, issuer, background, and other relevant factors. Appropriate due diligence could also generally identify an alternative investment’s high costs, illiquidity, and any possible conflicts of interest.
Things to do if you have knowledge regarding these issues like HMS Income Fund?
Haselkorn & Thibaut, P.A. is investigating these issues concerning HMS Income Fund and similar non-traded BDCs, including (but not limited to those examples listed previously ). If you’re an investor with knowledge about any of those problems related to the sales practice or oversight issues at regional or national broker-dealer firms involved in making these recommendations to”purchase” or”hold” those securities in your investment accounts, please contact our offices.
The investor law firm that specializes in representing buyer customers in investment fraud issues and FINRA arbitration cases nationwide. The two name partners have over 45 years of combined legal experience representing investors (both institutional and individual investors) seeking to aggressively pursue their promises and optimizing customer recoveries of investment reductions for victims of negligence or investment fraud. For investors confronted with investment reductions, a FINRA Dispute Resolution customer dispute might be the way to go if you would like to recoup your losses in a personal, discreet, and effective option (in comparison to state or national court litigation). One of the most critical choices that can be made in this procedure is to think about having experienced securities arbitration attorneys on your side so that you can maximize your potential recovery of investment losses. The securities arbitration attorneys at Haselkorn & Thibaut, P.A. (InvestmentFraudLawyers.com) can help you from beginning to finish in this procedure. This FINRA Dispute process is a personal mediation process between you and your broker firm. There are typically no depositions, and the process is meant to be a faster, more efficient, and less expensive alternative to courtroom litigation.
The sole purpose of this notice is to look into the way national, and regional broker-dealer companies conducted business and managed investment recommendations and trades in non-traded BDCs and non-traded REITs with retail investors in addition to the supervision of same. If you have any knowledge or experience with these matters, please contact Haselkorn & Thibaut, P. A., in www.investfraudlawyers.com or telephone 1-888-628-5590.
Tom, aka T Rex, is seasoned financial pro that cut his teeth on the Chicago trading oil futures in 1995. He has bachelor’s degree in finance and management. In less than 3 years he bought his own seat and set up shop on the exchange. For the next 10 years Rex traded his own account and some institutional accounts. In 2017, he decided to move to Florida and focus on educating traders and writing for financial websites.