Backwater Bluff Investments, LLC – Investor Lawsuit Investigation
The White Law Group is investigating potential securities claims involving Backwater Bluff Investments, LLC, a private placement real estate investment based in Dexter, Missouri. According to a Form D filing with the Securities and Exchange Commission, the company launched a Regulation D Rule 506(b) offering in December 2019 to raise $3,510,085.
About Backwater Bluff Investments, LLC
Backwater Bluff Investments, LLC was organized in Missouri in 2018 and lists its business focus under “Other Real Estate.”
- Total Offering Amount: $3,510,085
- Total Sold: $3,510,085 (fully subscribed)
- Number of Investors: 40
- Sales Commissions Reported: $4,000
- Proceeds to Executives/Promoters: $350,000 (estimated)
Moloney Securities Co., Inc. (CRD#: 38535) was listed as a participating broker-dealer in the offering.
Risks of Private Placement Investments
- Illiquidity: These securities are not publicly traded and may be difficult to sell.
- High Risk of Loss: Real estate–focused investments may depend heavily on local market conditions.
- Limited Transparency: Private placements are not subject to the same reporting standards as public companies.
- High Commissions and Fees: Incentives for brokers may lead to conflicts of interest.
Broker Duties and Investor Claims
Broker-dealers have a duty to conduct due diligence on investment offerings and to ensure that recommendations are suitable for their clients’ risk tolerance, financial needs, and investment objectives.
If your broker unsuitably recommended Backwater Bluff Investments, LLC, or failed to adequately disclose the risks, you may have a claim for financial recovery.
FINRA Arbitration vs. Class Action
Most claims against broker-dealers are handled through FINRA arbitration, a private dispute resolution forum for investors. This process is often quicker and more efficient than joining a class action lawsuit.
Free Consultation with a Securities Attorney
If you suffered losses investing in Backwater Bluff Investments, LLC, The White Law Group may be able to help you recover your losses through FINRA arbitration.
For a free consultation, call our securities fraud attorneys at 888-637-5510 or visit us online at www.whitesecuritieslaw.com.
FAQs – Backwater Bluff Investments
What is Backwater Bluff Investments, LLC?
It is a Missouri-based private placement real estate investment launched in 2019 under a Regulation D Rule 506(b) exemption.
How much was raised in the offering?
According to the Form D, the issuer raised the full $3,510,085 from 40 investors.
Can I recover if I invested?
Possibly. If your financial advisor failed to disclose the risks or unsuitably recommended the investment, you may be able to pursue recovery through FINRA arbitration.
