Potential FINRA Claims Involving Otemanu Boughton Investors, LLC
The White Law Group is investigating potential securities claims involving Otemanu Boughton Investors, LLC, a private placement investment formed in 2021 and incorporated in Delaware.
According to a Form D filing with the Securities and Exchange Commission, the company launched a Regulation D Rule 506(b) offering in December 2021 to raise up to $10,335,000.
About Otemanu Boughton Investors, LLC
Otemanu Boughton Investors, LLC, organized in 2021 and based in Santa Rosa Beach, Florida, identifies its focus as “Other Real Estate.” According to the Form D, the company sought to raise $10,335,000 and reported selling $9,723,000 to 80 investors, with a minimum investment of $50,000. The filing also notes $49,600 in sales commissions and an estimated $1,800,000 in proceeds to executives and promoters. Moloney Securities Co., Inc. (CRD#: 38535) was listed as a participant in the offering.
Risks of Private Placement Investments
Investments like Otemanu Boughton Investors, LLC can carry significant risks for retail investors, including:
- Illiquidity: Private placements are not traded on public exchanges and can be difficult to resell.
- High Risk of Loss: Real estate–based projects may depend heavily on market conditions and management performance.
- Conflicts of Interest: Commissions and fees create incentives for brokers to recommend unsuitable products.
- Lack of Transparency: Investors receive less information than they would from a public company.
Broker Duties and Investor Claims
Broker-dealers are required to perform due diligence on private placements and to ensure that recommendations are suitable for their clients’ financial profiles and risk tolerance. If your advisor unsuitably recommended Otemanu Boughton Investors, LLC, or failed to disclose the risks, you may have grounds for a claim.
FINRA Arbitration vs. Class Action
Claims against broker-dealers are typically pursued through FINRA arbitration, which is often faster and more efficient than joining a class action lawsuit. Arbitration allows investors to seek recovery of their losses directly from the firms that sold them the investment.
Free Consultation with a Securities Attorney
If you invested in Otemanu Boughton Investors, LLC and have suffered losses, The White Law Group may be able to help you recover your investment through FINRA arbitration.
For a free consultation, call 888-637-5510 or visit www.whitesecuritieslaw.com.
FAQs
What is Otemanu Boughton Investors, LLC?
It is a Delaware-based private placement real estate investment launched in 2021.
How much was raised in the offering?
The issuer reported raising $9.7 million out of a $10.3 million offering, with 80 investors participating.
Can I recover if I invested?
Possibly. If your broker failed to disclose the risks or recommended the investment unsuitably, you may be able to pursue recovery through FINRA arbitration.
