Wrap Technologies, Inc., Investment Losses
The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended Wrap Technologies, Inc. to investors.
Wrap Technologies, Inc. (WRTC) reportedly operates as a development stage security technology company. The company reportedly filed a form D to raise capital from 105 investors in 2018 in a technology investment. The total offering amount sold was purportedly $13,683,222, according to the Reg D.
According to MarketWatch, as of September 7, 2020, the share price of Wrap Technologies has dropped more than -40% in the past 3 months.
The trouble with alternative investments is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
Broker dealers are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
