CAI Las Vegas Hotel Partners Fund: Investigation

CAI Las Vegas Hotel Partners Fund: Investor Lawsuit Investigation

Investors in the CAI Las Vegas Hotel Partners Fund may be facing significant risks tied to illiquidity, project delays, and the inherent complexity of private placement investments. The White Law Group is investigating potential securities fraud claims on behalf of investors who were unsuitably recommended this high-risk alternative investment by their financial advisors.

Hotel Project in 2019 – CAI Las Vegas Hotel Partners Fund

According to the Reno Journal, CAI Investments announced plans for a mixed-use hotel project in 2019. The non-gaming hotel was designed to include apartments developed by The Calida Group, as well as restaurants and retail such as Chick-fil-A, Wahoo’s Fish Taco, and Denny’s.

In 2021, CAI filed a Form D with the SEC to raise capital through the CAI Las Vegas Hotel Partners Fund. The equity offering sought $34,500,000 in capital, and Emerson Equity was reportedly listed as the sales compensation recipient.

Risks of Complex Private Placements

Regulation D private placements are speculative, high-risk investments that are often unsuitable for retail investors. These investments typically involve high upfront commissions and fees, which may incentivize financial advisors to recommend them despite the risks.

Brokers and their firms have a duty to conduct adequate due diligence before recommending such products. Investments must be consistent with each client’s risk tolerance, financial situation, and investment objectives. When unsuitable recommendations occur, investors may have grounds for a claim.

Recovery Options: FINRA Arbitration vs. Class Action

When investors suffer losses, they often ask whether they should pursue a class action lawsuit or an individual FINRA arbitration. For larger claims (typically $100,000+), arbitration is generally a more effective option. Class actions tend to consolidate many smaller claims that may not be economical to pursue individually.

Free Consultation with a Securities Attorney

If you invested in CAI Las Vegas Hotel Partners Fund and suffered losses, you may be entitled to recovery. The White Law Group is currently investigating potential claims against the brokerage firms that sold this offering. For a free consultation with a securities attorney, call us today at 888-637-5510.

Frequently Asked Questions (FAQs)

What type of investment is the CAI Las Vegas Hotel Partners Fund?

It is a Regulation D private placement investment in a mixed-use hotel project, marketed as an alternative investment but carrying high risk and illiquidity.

Why are private placements like this considered risky?

They often lack transparency, are difficult to value, and may tie up investor capital for years. High commissions can also create conflicts of interest for brokers.

Can investors recover losses from unsuitable recommendations?

Yes. If your advisor failed to perform adequate due diligence or recommended the investment without considering your financial situation, you may pursue damages through FINRA arbitration.