The following is an update of The White Law Group’s investigation involving Aequitas Capital Finance. For more information on the firm’s investigation, visit here.
The firm continues to investigate the liability that brokerage firms may have for recommending Aequitas private placement offerings.
Upon information and belief, here is what has been reported or disseminated by Aequitas to some of its financial advisor partners thus far:
– Aequitas Capital Finance acknowledges that it is under severe cash flow problems and is in default on some of the Aequitas Private Notes.
– Aequitas claims that there are underlying assets supporting the Private Notes.
– Various entities are investigating Aequitas and its executives for misrepresentation, negligence and, potentially, fraud, but it is unclear (given Aequitas’ financial problems) whether Aequitas would have any money to pay out in those potential claims.
– Earlier this month, certain financial advisors that sold Aequitas products had a meeting with the senior management of Aequitas Commercial Finance to discuss their recent default of Private Note redemptions. During that meeting Aequitas acknowledged the significant cash-flow issues they are having.
– Aequitas has hired FTI Consulting, a specialist in forensic accounting and restructuring to take over management control and oversee some form of restructuring.
– Aequitas is allegedly attempting to avoid formally filing for Chapter 11 bankruptcy protection but it has not been ruled out.
Overall the outlook appears bleak. The White Law Group is evaluating potential recovery options against the financial professionals that sold these products.
Brokerage firms have a responsibility to recommend securities products that are consistent with each individual client’s age, net-worth, investment objectives, financial needs, and risk tolerance. When brokerage firms overlook suitability requirements and industry regulations they may be liable for investment losses in a FINRA arbitration claim.
Specifically, The White Law Group’s securities fraud investigation includes the following Aequitas offerings (among others):
Aequitas Income Protection Fund
Aequitas Income Opportunity Fund II
Aequitas Capital Opportunities Fund
Aequitas Secured Subordinated Promissory Notes
Aequitas Private Notes
If you invested in an Aequitas offering and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
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 Franklin, Tennessee.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.
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