iSelect Qualified Purchaser Fund LLC Lawsuit Investigation

iSelect Qualified Purchaser Fund: Help for Investors

The White Law Group is investigating potential securities lawsuits involving broker-dealers who may have improperly recommended iSelect Qualified Purchaser Fund LLC to investors.

What is iSelect Qualified Purchaser Fund LLC?

iSelect Qualified Purchaser Fund LLC is a pooled investment fund structured as a limited liability company. According to SEC filings, the issuer filed a Form D to raise capital beginning in 2018. The offering was marked as “indefinite,” and the fund reportedly raised $12,830,000. The filing states that commissions of up to 7% of total sales were permitted to registered broker-dealers.

REG D Private Placements: High Risk Investments

Private placement investments are often touted for their income potential and for being “non-correlated” to the stock market. Too often the financial advisor or broker ignores and/or fails to disclose the risks involved in these investments.

However, private placement investments such as iSelect Qualified Purchaser Fund LLC are typically illiquid investments. There are often legal or contractual restrictions on your ability to liquidate your investment, and even if sale of the offering is permitted there may be no buyers. You may need to hold these securities for an indefinite period of time.

Companies that issue unlisted securities may provide little or no transparency into their financial condition.

While some private placement investments may make periodic distributions, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment—sometimes close to 10% of the client’s total investment.

iSelect Qualified Purchaser Fund Offerings: Suitable for You?

Under the “Regulation Best Interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment. If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.

If your advisor unsuitably recommended a private placement investment and you lost money, the securities attorneys at The White Law Group may be able to help you. You may be able to recover losses by filing a FINRA Arbitration lawsuit against the brokerage firm that sold you the investment.

Lawsuit Options: FINRA Arbitration vs. Class Action

Investors considering legal action may wonder whether a class action lawsuit or an individual FINRA arbitration claim is the better option. Typically:

• FINRA Arbitration is often more suitable for investors with losses exceeding $100,000.

• Class Action Lawsuits are usually pursued when numerous investors have small claims that are impractical to litigate individually.

Learn more about Reg D private placements.

FINRA Lawsuits

If you are concerned about your investment losses in iSelect Qualified Purchaser Fund LLC, you may have recovery options. If you want to learn more about your legal options, please contact the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

https://whitesecuritieslaw.com