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Written by 9:49 am Blog, Securities Fraud Articles

Recovery of SCICG Mezzanine Fund Investment Losses

Have you suffered investment losses in SCI Mezzanine Fund (a/k/a SCI Capital Group Mezzanine Fund)? If so, the securities attorneys of The White Law Group may be able to help recover your investment losses.

According to SCI Capital Group press release, the SCI Mezzanine Fund was launched in 2008 “with capital commitments exceeding its initial $10 million offering.” Upon information and belief, the SCI Mezzanine fund did not invest in any real estate but rather provided short-term secured loans to SCI affiliates for real estate development and acquisitions. SCI was well known for packaging tenant-in-common (TIC) investment opportunities offered as a 1031 exchange tax deferral.

Unfortunately for many investors, SCI filed for chapter 11 bankruptcy in 2011, and a plan for liquidation was accepted by the bankruptcy court in June 2012. Investors hoping to get back what they put in will be at the end of a long line. As such, The White Law Group is currently investigating the liability that brokerage firms may have for recommending these complex and high risk SCI products.

Brokerage firms are required to perform the necessary due diligence on every investment to determine a reasonable likelihood of success. In addition, brokerage firms have a fiduciary duty to make investment recommendations that are consistent with each individual client’s age, net worth, investment experience, income, and risk tolerance.

Given what is known about the SCI Mezzanine Fund and other SCI investments, it is apparent that many brokerage firms misled investors and that many retired investors purchased these investments largely based on the income they thought they would provide.

If you purchased the SCI Mezzanine Fund or any other SCI investment, you may have a claim to recover your losses through a FINRA arbitration claim. For a free consultation, please call the securities attorneys of The White Law Group at (312)238-9650.

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 Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.WhiteSecuritiesLaw.com.

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