Securities Investigation: Terra Secured Income Fund 7 

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Terra Secured Income Fund 7 to investors.  

Terra Capital Partners is a New York based income fund manager that originates and manages mezzanine and bridge loans backed by commercial real estate, according to its website. The company purportedly raises capital in various private placement offerings.

The company reportedly filed a form D to raise capital from investors for the offering Terra Secured Income Fund 7 in 2019. The total offering amount sold was purportedly $30,773,375. 

The Risks of Investing in Private Placements- Terra Secured Income Fund 7

Terra Secured Income Fund 7 is a Regulation D private placement investment. Investments such as these are typically sold by brokerage firms in exchange for a large up-front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%. In this case, the filing indicates that the sales commissions and fees were estimated at 10% of the offering amount. 

The problem with private placement investments is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. 

The White Law Group is investigating potential claims involving brokerage firms who may have for improperly recommended high-risk private placements to investors. 

Broker Due Diligence

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim. 

Recovery of Investment Losses

If you have concerns regarding your investment in Terra Secured Income Fund 7 and would like to speak with a securities attorney about your options, please call The White Law Group at 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 Seattle, Washington. For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com. 

 To learn more about our claims involving high-risk private placement investments, please see: Concord Investment Services Lawsuit filed involving High-Risk Alternative Investments