Pacific Oak Opportunity Zone Fund I Lawsuit Investigation

Pacific Oak OZ Fund I: Help for Investors

The White Law Group is investigating potential securities lawsuits involving broker-dealers who may have improperly recommended Pacific Oak Opportunity Zone Fund I, LLC to investors.

What is Pacific Oak Opportunity Zone Fund I, LLC?

Pacific Oak Opportunity Zone Fund I, LLC is a private real estate investment vehicle formed in 2019 and sponsored by Pacific Oak Capital Advisors, LLC. According to its Form D filing with the SEC, the fund was created to raise capital under Regulation D to develop real estate in federally designated Opportunity Zones across the United States.

The offering sought to raise up to $250 million, with the issuer reporting that approximately $29.8 million had been sold to investors as of the most recent filing. The offering reportedly included high upfront fees, with estimated sales commissions totaling $21.25 million, and an additional $11.87 million in related compensation to the fund’s executive officers or affiliates. Broker-dealer involvement included firms such as Arete Wealth Management, LLC, Pacific Oak Capital Markets, LLC, and Thornhill Securities, Inc.

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 Pacific Oak Opportunity Zone Fund I 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% or more of the client’s total investment.

Pacific Oak Opportunity Zone 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.

FINRA Lawsuits

If you are concerned about your investment losses in Pacific Oak Opportunity Zone Fund I, 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