Investigating Potential Claims
Have you suffered investment losses in Redwood Mortgage Investors VIII? 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.
The trouble with private placements, Redwood Mortgage Investors VIII, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, private placements are more complex and are better suited for sophisticated and institutional investors. In addition, private placements are exempt from registration with the Securities and Exchange Commission (SEC), therefore they lack the same regulatory oversight as more traditional investments.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience.
Furthermore, broker dealer often earn extremely high sales commission selling private placements, sometimes as high as 15%. Unfortunately, the high sales commissions associated with private placements often provides some broker dealers with enough incentive to overlook suitability requirements.
Investors looking to sell a private placement investment often have difficulty finding a buyer, and can suffer significant losses on the sale. According to LPsales.com, shares of Redwood Mortgage Investors VIII sold for $0.27 per unit in February 2014.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through a FINRA arbitration.
Free Consultation with a Securities Attorney
To determine whether you may be able to recover investment losses incurred as a result of your purchase Redwood Mortgage Investors VIII, please contact The White Law Group at 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.
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