ICC Income Fund I LP: Investigating Claims
The White Law Group is investigating potential securities claims involving ICC Income Fund I LP, a Delaware limited partnership formed in 2021. According to a Form D filed with the Securities and Exchange Commission, the company sought to raise $35 million through a private placement offering under Rule 506(b) of Regulation D. As of the latest filing, the issuer had sold $3 million of securities to seven investors, leaving $32 million remaining.
Orchard Securities, LLC (CRD#: 133378), a broker-dealer based in Utah, is listed as a placement agent for the offering. The issuer disclosed estimated sales commissions of more than $3.3 million, highlighting the high costs often associated with private placement investments. The minimum investment accepted from outside investors was listed as $50,000.
About ICC Income Fund I LP
ICC Income Fund I LP is based in Chicago, Illinois, and is reportedly sponsored by Incommercial, Inc. The fund identifies as a commercial real estate pooled investment vehicle, focused on acquiring and managing income-producing assets.
Risks of Investing in Private Placements
Private placements such as ICC Income Fund I LP may involve significant risks. These investments are typically illiquid, lack transparency, and are not subject to the same regulatory oversight as publicly traded securities. Investors may face high upfront fees and commissions, while the underlying assets may carry valuation risks, leverage, or cash flow uncertainty. Many investors are not made fully aware of the speculative nature of these offerings, and unsuitable recommendations by financial advisors can lead to devastating financial losses.
Broker Due Diligence Obligations
Broker-dealers like Orchard Securities have a duty to ensure that investments are suitable for their clients given the investor’s age, financial situation, risk tolerance, and investment objectives. Firms must also conduct reasonable due diligence on offerings before recommending them. Failure to adequately vet or disclose the risks of private placements may be a violation of securities laws and could result in liability through a FINRA arbitration claim.
FINRA Arbitration vs. Class Action
Investors seeking recovery from losses in ICC Income Fund I LP may be able to pursue claims through FINRA arbitration. Unlike a class action, arbitration allows investors to bring individual claims directly against the brokerage firm that recommended the investment. These claims often include allegations of unsuitable recommendations, misrepresentation, and failure to supervise.
Free Consultation with Securities Attorneys
If you suffered losses investing in ICC Income Fund I LP, you may have a claim for recovery. The securities attorneys at The White Law Group have handled over 800 FINRA arbitration cases nationwide and can help you evaluate your legal options.
For a free consultation with a securities fraud attorney, please call The White Law Group at 888-637-5510 or visit us online at www.whitesecuritieslaw.com.
FAQs
What is ICC Income Fund I LP?
ICC Income Fund I LP is a private placement real estate fund formed in Delaware in 2021, focusing on income-producing commercial assets.
Why are private placements risky?
Private placements often lack liquidity and transparency, carry high commissions, and may involve speculative or leveraged investments that can result in substantial losses.
How can investors recover?
Investors who were misled or sold unsuitable private placements may be able to file a FINRA arbitration claim against the brokerage firm that recommended the investment.
