BH Capital Strategic Debt Investment Fund I – Securities Investigation

Investigating Potential claims involving BH Capital Strategic Debt Investment Fund I

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended BH Capital Strategic Debt Investment Fund I to investors.

According to a Form-D filed with the SEC, BH Capital Strategic Debt Investment Fund I is a limited liability company organized in 2012 and sponsored by BH Capital Partners. The company was founded in 2004. The company’s line of business includes renting, buying, selling and appraising real estate.

Is this investment suitable for you?

Interests in limited liability companies (LLC) such as BH Capital Strategic Debt Investment Fund I, are often sold as unregistered securities and lack the same regulatory oversight as more traditional investment products. Limited liability companies generally involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds.

Some brokers may have downplayed the risks associated with alternative investments and misled investors into thinking that they are “safe” investment products.

The high sales commission brokers earn for selling interests in limited liability companies may have provided some brokers with enough incentive to push the product to unsuspecting investors. According to the Form D, sales commissions for this offering “include up to 7.0% of gross proceeds and a dealer manager fee of up to 2.5%.”

Broker dealers are required by law to perform adequate due diligence on all investment recommendations. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

If a broker makes an unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

Recovery of Investment Losses

If you suffered losses investing in BH Capital Strategic Debt Investment Fund I or another BH Capital investment you may be able to recover your losses through FINRA Arbitration.

For a free consultation with a securities attorney, please contact The White Law Group at 1-888-637-5510.

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 firm, visit www.WhiteSecuritiesLaw.com.