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Written by 9:53 am Blog, Securities Fraud Articles

Recovery of ATEL Cash Distribution Fund V

If you have suffered investment losses in ATEL Cash Distribution Fund, the following information may be of importance to you and aid you in the recovery of your losses.

According to their website, ATEL Capital Group provides venture leasing and equipment financing to corporations worldwide. The company leases a variety of equipment, including mining, transportation, construction, ocean-going vessels, aircrafts, and machine tools. The limited partnership, ATEL Cash Distribution Fund V, was formed in 1994 for the acquisition of equipment to generate revenue through leasing and sales.

Unfortunately for investors, the going price for the ATEL partnership on the secondary market is less than $1 per unit. According to SEC filings, ATEL limited partnership interests were sold for $10 per unit. Considering, in June 2013 ATEL sold for $0.49 per unit on the secondary market, investors could be looking at more than 95% decrease in the value of their units.

Limited partnership investments are generally private transactions that are not sold on an exchange. These types of investments are intended for accredited and institutional investors because the level of risk is generally too high for conservative and moderate risk investors. However, the high commissions associated with the sales of limited partnerships provide some brokers with enough incentive to push these products on unsuitable investors.

According to a Form 10-Q filed for ATEL Cash Distribution Fund V with the SEC, selling commissions of 9.5% were deducted from limited partners’ capital to pay brokers.

Broker dealers that sold ATEL limited partnerships have a fiduciary duty to disclose all the risks to investors and only recommend investments that are suitable for an individual given their age, net worth, investment objectives, liquidity needs and risk tolerance. Brokers that fail to perform their fiduciary duty and overlook suitability requirements can be held liable for investment losses through FINRA arbitration.

The White Law Group is investigating potential claims on behalf of investors in ATEL Cash Distribution Fund V, in addition to other ATEL Funds.  For more information on the firm’s investigation visit here.

If you suffered losses as a result as a result of your investment in ATEL Cash Distribution Fund V or another ATEL Fund, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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