Investigating Potential Claims – AEI Income & Growth Fund 23
Did you lose money investing in AEI Income & Growth Fund 23 at the recommendation of your financial advisor? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
AEI Income & Growth Fund 23 engages in acquiring, leasing, holding, and selling existing and newly constructed commercial properties located in the United States. Its properties include commercial, single tenant buildings leased under triple net leases.
AEI Capital Corporation often raises money for investments through Regulation D private placement offerings like the company did for AEI Income & Growth Fund 23. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The trouble with private placement investments, like AEI Income & Growth Fund 23, is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. The also tend to lack liquidity. Often when the investor is ready to sell, they can only do so at a loss.
Currently Central Trade & Transfer, a secondary market for private placements, is listing shares of AEI Income & Growth Fund 23 for $400/share. Unfortunately for investors, the original purchase price was $1,000/share.
Securities Investigation
The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements like AEI Income & Growth Fund 23 to investors.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Reg D private placements typically have high sales commissions and due diligence fees the brokers earn – this may provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments. Some brokers may misrepresent the basic features of the products by focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of AEI Income & Growth Fund 23 or another AEI Capital Corporation private placement investment, please contact The White Law Group at 1-888-637-5510 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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.
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