Investor Alert: 11 Commerce Equities LLC – Regulation D Investment Losses
Have you suffered losses investing in 11 Commerce Equities LLC? If so, the securities attorneys at The White Law Group are investigating potential claims involving broker-dealers that recommended this Reg D private placement.
About the Offering – 11 Commerce Equities LLC
11 Commerce Equities LLC, a Florida limited liability company formed in 2021, reportedly filed a Form D notice of exempt offering with the SEC in October 2021. The company offered equity securities under Rule 506(b) of Regulation D, raising $8 million from 5 investors, with a minimum investment of $1,000,000, according to the Form D.
The offering reportedly paid approximately $592,593 in sales commissions, including broker-dealer fees, marketing allowances, and wholesaler expenses. Broker-dealers involved in soliciting investments included Arkadios Capital, Time Equities Securities, Nationwide Planning Associates, and others.
Understanding the Risks of Regulation D Offerings
Reg D private placements like 11 Commerce Equities LLC are often marketed as alternative investments offering potential tax benefits or diversification. However, these securities are speculative and carry elevated risks—particularly for conservative investors or retirees.
Common risks of Regulation D offerings include:
- Illiquidity: No secondary market for resale—investors may be locked in indefinitely.
- High Commissions & Fees: Broker incentives can exceed 10% of the offering, impacting potential returns.
- Lack of Transparency: Limited public financial data makes it difficult to assess investment performance.
- Manager Conflicts of Interest: Payments to sponsors and affiliates can reduce net investor proceeds.
Broker Due Diligence Obligations
FINRA-registered broker-dealers are obligated to conduct reasonable due diligence on private placements before offering them to clients. They must ensure:
- The investment is suitable based on an investor’s risk profile and objectives;
- Material risks, conflicts of interest, and fees are properly disclosed;
- The financial condition and track record of the issuer are evaluated.
Failure to do so may be grounds for a claim of negligence, unsuitable investment recommendations, or failure to supervise.
FINRA Arbitration vs. Class Action Lawsuits
In most cases, investors pursuing recovery for private placement losses are required to proceed through FINRA arbitration, not a class action. Benefits of arbitration include:
- Quicker resolution compared to courts
- Potential for individualized damage awards
- Less costly legal process
Most brokerage agreements include mandatory FINRA arbitration clauses, making this the preferred and sometimes only legal forum for recourse.
Free Consultation – Recover Your Losses
If you invested in 11 Commerce Equities LLC at the recommendation of your financial advisor and are concerned about losses or lack of liquidity, The White Law Group may be able to help. We have successfully handled over 800 FINRA arbitration cases nationwide.
For a free consultation with a securities attorney, call 888-637-5510 or visit www.whitesecuritieslaw.com.
Securities Fraud Attorneys | The White Law Group | FINRA Arbitration Lawyers
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Seattle and Chicago. We help investors in all 50 states who have suffered losses due to unsuitable investment recommendations, misrepresentation, or fraud.
FAQs – 11 Commerce Equities LLC
1. What is 11 Commerce Equities LLC?
It is a Florida-based real estate investment that raised $8 million through a 2021 Regulation D private placement.
2. How much were the fees and commissions in this offering?
The company paid approximately $592,593 in sales commissions and related marketing expenses, according to the Form D.
3. Can I recover losses if my broker didn’t disclose the risks?
Yes. If your advisor failed to conduct due diligence or fully disclose fees and risks, you may have a claim through FINRA arbitration.
