Investor Alert: iCap Vault 1 LLC

Securities Investigation: iCap Vault 1 LLC 

Are you concerned about your investment in iCap Vault 1 LLC at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you.

iCap Vault Management reportedly filed a form D to raise capital from investors for the offering ICap Vault 1 LLC. The total offering amount sold was purportedly $$20,123,757.  

iCap Vault 1 LLC is a Regulation D private placement investment. 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%. In this particular offering, the filing indicates that the sales commissions were estimated at “0.25% per quarter on average daily balance.” 

The problem with private placement investments such as ICap Vault 1 LLC is that they typically involve a high degree of risk. They are often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. They also tend to be illiquid and when ready to sell, it is often difficult to find a buyer. Although you may be able to sell these investments through a secondary market, it may be at a financial loss. 

The White Law Group is investigating potential claims involving brokerage firms who may have for improperly recommended high-risk private placements to investors.  

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.  

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.  

Potential Lawsuits to Recover Financial Losses

 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 Seattle, Washington.