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Written by 4:51 pm Blog, Current Investigations

Investor Alert: Whittier Apartment Investors LLC 

Investor Alert: Whittier Apartment Investors LLC, featured by top securities fraud attorneys, the White Law Group

Securities Investigation: Whittier Apartment Investors LLC  

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Whittier Apartment Investors LLC to investors. 

Whittier Apartment Investors LLC, a commercial real estate fund, reportedly filed a Form D to raise capital from investors in 2020. The total offering amount was purportedly $8,227,391 with sales commissions and fees estimated at 10% of the offering amount, according the SEC filing.  

Private placement investments such as Bastion Real Estate Income Fund 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%.   

The problem with private placement investments such as Whittier Apartment Investors LLC 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. ? To learn more about the risks of investing in private placement investments, please see: Regulation D Private Placement Fraud Attorneys 

Investigating Potential Claims  

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements, like Whittier Apartment Investors LLC to investors.  

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

Brokerage firms are required to perform due diligence on any investment they recommend, including private placement investments. They must ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience.  This type of investment is likely only suitable for wealthy and/or sophisticated investors. 

If you have concerns regarding your investment in Whittier Apartment Investors LLC and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.  

The White Law Group is a national securities fraud, securities arbitration, and investor protection 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. 

 

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