Have you suffered investment losses in Cion Investment Corporation? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
On August 23, 2016, CION Investment Corporation increased the public offering price per share from $9.95 to $10.00 in accordance with the company’s share pricing policy. Net of sales commissions and dealer manager fees, the offering prices approximates an $8.96 net asset value per share. The price increase is effective beginning August 24, 2016.
According to their website, C?ON Investment Corporation (“C?ON”) is a non-traded business development company, or BDC, that primarily invests in the senior secured debt of U.S. middle market companies, which we define as companies with annual EBITDA of $50 million or less.
Cion Investment Corporation appears to have raised money for its investment through a Reg D private placement offering. Reg D private placements structured like Cion Investment Corporation 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%.
The trouble with business development companies (“BDC”), like Cion Investment Corporation, 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.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling BDCs like Cion Investment Corporation.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to 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.
However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
For more information on The White Law Group’s investigation in to potential Cion Investment Corp claims, click here.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Cion Investment Corporation, please contact The White Law Group at 1-888-637-5510 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 Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.
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