Potential FINRA Claims Involving Bayou Serpent Investments, LLC
The White Law Group is investigating potential securities claims involving Bayou Serpent Investments, LLC, a private real estate investment entity formed in 2019 and based in Missouri.
According to a Form D filed with the Securities and Exchange Commission, the company launched a Regulation D Rule 506(b) offering to raise approximately $16.4 million in pooled investment fund interests.
The filing reports that over $15.1 million has already been sold to 157 investors, with more than $345,000 paid in sales commissions to participating broker-dealers. Placement agents included Patrick Capital Markets, Sanctuary Wealth Management, Anthony Capital, Wade Financial Advisory, Whitehall-Parker Securities, Center Street Securities, Carter Terry & Company, and several others.
Background and Risks of the Investment
Bayou Serpent Investments, LLC identifies as part of the “Other Real Estate” industry group. Like many private placement offerings, these investments often come with high commissions, limited liquidity, and significant risks for retail investors. The Form D notes that proceeds include more than $1.2 million earmarked for executive compensation, raising questions about conflicts of interest and use of investor funds.
Private placements under Regulation D are exempt from the full registration requirements of the Securities Act of 1933. As a result, they provide far less transparency and oversight than publicly traded securities. Investors may find it difficult to assess the true value of their investment or liquidate their shares if they need access to capital.
Broker-Dealer Duties
FINRA rules require that brokerage firms perform adequate due diligence on private placements before recommending them to clients. They must also ensure that recommendations are suitable based on the investor’s age, financial situation, and risk tolerance. Unfortunately, in many cases, high-commission products like Bayou Serpent Investments, LLC are pushed on retail investors who may not fully understand the risks.
FINRA Arbitration for Investor Recovery
If you suffered losses in Bayou Serpent Investments, LLC, you may be able to pursue recovery through a claim against the brokerage firm that sold you the investment. These claims are typically filed through FINRA arbitration, a forum designed to resolve disputes between investors and financial professionals. Unlike class actions, arbitration claims are individually pursued and may allow for recovery of damages such as losses, commissions, and fees.
Free Consultation with Securities Attorneys
The securities attorneys at The White Law Group have handled over a thousand FINRA arbitration claims on behalf of investors. We are currently investigating whether brokerage firms improperly recommended Bayou Serpent Investments, LLC to retail clients.
If you have suffered losses in Bayou Serpent or other private placements, please contact our offices at (888) 637-5510 for a free consultation.
FAQs
What is Bayou Serpent Investments, LLC?
It is a Missouri-based private real estate investment company that filed a Regulation D Form D offering in 2019, raising over $15 million from investors.
Why are private placements risky?
They are typically illiquid, lack transparency, and often pay brokers high commissions, which may lead to conflicts of interest and unsuitable sales.
How can I recover my investment?
You may be able to file a FINRA arbitration claim against the broker-dealer who recommended the investment. Our attorneys can evaluate your claim at no cost.
