Investors in ATEL 17 LLC may have recovery options.
Have you suffered investment losses in ATEL 17 LLC at the advice of your financial advisor? If so, the securities attorneys of 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.
ATEL 17 LLC, a $150 million leasing fund, is an investment offering used to raise capital to purchase a portfolio of leased equipment, equipment financing transactions and other investments leased to major corporations. According to SEC filings, ATEL intended to use 87% of the capital it raised from the sale of “units” to purchase its portfolio. The fund was declared effective by the Securities and Exchange Commission on January 5, 2016.
Unfortunately, brokers may not always adequately explain the risks and liquidity problems of the purchase of units in a Limited Liability Company (LLC) to investors. These investments are considerably more risky than traditional investments such as stocks, bonds, or mutual funds.
“No market exists for the Units or is expected to develop, the Fund’s Operating Agreement includes significant restrictions on the transferability of Units, and an investor may be unable to sell his Units or able to sell the Units only at a significant discount.”
According to Central Trade & Transfer, a secondary market for alternative investments, shares of ATEL 17 LLC were listed for sale last March for just $3.75 per unit. That is signifcantly less than the $10 per unit original offering price.
The risk factors listed on the prospectus of ATEL 17 includes no guarantee of distributions or return of your capital investment.
High Commissions for Brokers
Did you know that brokers can earn a 9% sales commission on ATEL offerings? This may provide some brokers with enough incentive to push the product to unsuspecting investors. Additionally, some brokers may have downplayed the risks associated with the purchase of LLC units and misled investors into thinking that they were “safe” investments.
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. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
If the firm fails to adequately disclose risks or makes unsuitable investment recommendations can be held liable for investment losses.
The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended ATEL 17 LLC to investors.
If you suffered investment losses in ATEL 17 LLC or another ATEL offering, the securities attorney at The White Law Group may be able to help you. Please call our offices 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.
To learn more about the firm, please visit WhiteSecuritiesLaw.com.
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