Written by The White Law Group• January 2, 2021• 5:50 pm• Blog, Current Investigations

Concerned about Investment in Choice Energy Holdings – III LLC?

Investigating Potential Claims involving Choice Energy Holdings – III LLC

Are you concerned about your investment in Choice Energy Holdings – III LLC? If so, the securities attorneys at The White Law Group may be able to help you recoup your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

In 2018, the company filed a Form D to raise capital from investors for a pooled investment fund.The total offering amount was purportedly $25,000,000. According to the Reg D filing, the “aggregate amount of commissions, expense reimbursements, and other fees is not anticipated to exceed 12.0%.”

The Risks of Investing in Reg D Private Placements

Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to 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.

Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products to its clients.