True Life Companies Elite Fund II, LLC: Investment Loss Recovery
The White Law Group is investigating potential securities claims involving True Life Companies Elite Fund II, LLC, a private placement investment, after concerns about valuation and secondary market pricing have come to light.
According to a Form D filed with the Securities and Exchange Commission (SEC), True Life Companies Elite Fund II, LLC, a Delaware-based limited liability company formed in 2020, was seeking to raise $40 million in capital through the sale of equity securities under Rule 506(b) of Regulation D. The minimum investment is listed as $50,000, with estimated sales commissions of up to $3.8 million. The issuer’s principal office is located in Denver, Colorado.
About True Life Companies Elite Fund II, LLC
The True Life Companies is a real estate investment and development firm that focuses on residential land development projects. The Elite Fund II was launched to pool investor capital for such projects, targeting long-term growth opportunities in the housing market. Like many Regulation D offerings, the investment is illiquid, high-risk, and not traded on a national exchange.
Secondary Market Concerns – Shares Listed for Just $1
While investors may have initially purchased units at significantly higher prices, recent activity on the secondary market paints a troubling picture. Central Trade & Transfer (CTT), a secondary market platform, recently listed shares of True Life Companies Elite Fund II for just $1 per share.
This dramatic discount raises serious concerns about the current value of the investment and the ability of investors to liquidate their holdings. Although secondary market pricing does not always reflect the issuer’s internal valuation, such steep markdowns often indicate investor demand is extremely limited and that market participants are skeptical about the future performance of the fund.
For investors, this could mean:
-
Significant losses if they attempt to sell their shares.
-
Long holding periods, with little to no liquidity.
-
Increased risk of total loss of principal, depending on the fund’s underlying real estate projects.
Private Placements – High-Risk Investments
Private placement investments like True Life Companies Elite Fund II, LLC, are often sold by financial advisors as alternative investments to diversify portfolios. However, these offerings typically involve:
-
High sales commissions (often 7–10%) creating conflicts of interest.
-
Lack of liquidity – no public market for resale.
-
Limited transparency compared to publicly traded securities.
-
High risk of loss, particularly if the underlying real estate ventures do not perform as expected.
Unfortunately, many investors are unaware of these risks until they attempt to sell or redeem their shares.
Recovery of Investment Losses
If you have suffered losses in True Life Companies Elite Fund II, LLC, you may be able to recover your losses through FINRA arbitration. Broker-dealers who sell private placements are required to perform adequate due diligence and ensure that recommendations are suitable for each individual investor. Failure to do so may result in liability for investment losses.
FINRA Arbitration vs. Class Action
Investors in private placements often ask whether they should join a class action lawsuit or pursue a claim through FINRA arbitration. While class actions may provide a collective resolution, they often result in smaller individual recoveries and may take years to resolve.
FINRA arbitration, on the other hand, allows investors to bring claims directly against the brokerage firm that recommended the investment, often resulting in more meaningful recovery on an individual basis.
The White Law Group – Nationwide Representation
The White Law Group is currently investigating potential claims involving True Life Companies Elite Fund II, LLCand other private placement investments. If your financial advisor misrepresented the risks of this investment or failed to conduct adequate due diligence, you may have a claim.
Free Consultation
If you invested in True Life Companies Elite Fund II, LLC and are concerned about your losses, please call The White Law Group at 888-637-5510 for a free consultation with a securities attorney.
Frequently Asked Questions
1. What does it mean if shares of True Life Companies Elite Fund II are listed for just $1 on Central Trade & Transfer?
When shares are listed at such a steep discount, it often reflects lack of investor demand and limited liquidity in the secondary market. While the $1 price does not necessarily equal the fund’s internal valuation, it signals that investors seeking to exit may be forced to accept substantial losses.
2. Can I sell my True Life Companies Elite Fund II shares?
Shares of True Life Companies Elite Fund II are illiquid and not traded on a public exchange. Investors may attempt to sell through secondary market platforms like Central Trade & Transfer, but pricing is usually far below the original purchase price. Many investors may have no viable way to liquidate their holdings without incurring losses.
3. What are my options if I suffered losses in True Life Companies Elite Fund II?
Investors who lost money in True Life Companies Elite Fund II may be able to pursue recovery through a FINRA arbitration claim against the broker-dealer that recommended the investment. Brokerage firms have a duty to perform due diligence and ensure recommendations are suitable. If they fail in that duty, they may be liable for damages.
