HMS Income Fund Inc. – BDC Securities Investigation

Recovering Investment Losses in HMS Income Fund

Did you lose money investing in HMS Income Fund at the recommendation of your financial advisor? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Hines is an international investment management firm, with the primary investment objective to generate current income through debt and equity investments in private middle market and lower-middle market U.S. companies.

HMS Income Fund is a publicly registered, non-traded business development company (BDC) sponsored by Hines.

According to SEC filings, HMS Income Fund, Inc. announced a decrease in the price of shares issued under its distribution reinvestment plan from $8.37 to $8.25 effective November 1, 2017.  The reduction was to ensure that shares are issued within 2.5% of the board of directors’ estimate of NAV per share. The NAV Per share is currently $8.22/share. The original offering price was $10/share.

A Business Development Company (BDC) is a company that invests in small and mid-sized businesses. Investors can buy shares in a BDC, and the money from their investments is used to fund the businesses. In turn, investors can profit from dividends paid on their investments, or, possibly, the sale of their shares.

Non-traded BDCs are high-risk investments. They typically have high commissions, and lack liquidity–similar to real estate investment trusts (REITs).

The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments, like HMS Income Fund.

Is a BDC suitable for you?

Broker-dealers are required to perform adequate due diligence on any investment they recommend. They should also ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience.

Broker-dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.

If you have lost money investing in HMS Income Fund the securities attorneys at The White Law Group may be able to help you. Please call The White Law Group at 1-888-637-5510 for a free consultation.

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. To learn more about The White Law Group visit www.whitesecuritieslaw.com.