Investigating Potential FINRA Claims – Sims Cathcart Funding LLC
Are you concerned about your investment in Sims Cathcart Funding LLC? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Private placements under Regulation D (Reg D) such as Sims Cathcart Funding LLC, are investment offerings that are typically sold to a limited number of accredited investors, such as high-net-worth individuals, institutions, or sophisticated investors. These offerings are exempt from the usual registration requirements of the Securities and Exchange Commission (SEC) under Regulation D, which allows issuers to raise capital without undergoing the full scrutiny of a public offering.
According to filings with the SEC, Sims Cathcart Funding LLC filed a Form D to raise capital from investors for a real estate fund. The total amount of the offering was purportedly $6,260,000.
Reg D private placements typically involve a high degree of risk. Private placements aren’t sold on any exchange meaning that they are illiquid and selling your investment could prove challenging. If you are able to find a buyer on a secondary market, you may end up selling your investment at a loss. Further, investments such as Sims Cathcart Funding are typically sold by brokerage firms in exchange for a large up-front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%. These high fees and commissions can make it difficult to see a healthy return on your investment.
Suitability Rules – FINRA Rule 2111
If your broker has made unsuitable investment recommendations, and you have suffered losses, you may be able to file a claim with FINRA to seek resolution through arbitration.
FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization that oversees the securities industry in the United States. The suitability rule (FINRA Rule 2111) is a regulation imposed by the FINRA that requires brokers and financial advisors to recommend investments that are suitable for their clients based on their financial situation, investment objectives, risk tolerance, and other relevant factors.
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. Brokerage firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.
Experienced securities attorneys can help you through the FINRA arbitration process. The intricacies of FINRA arbitration can be challenging to navigate, and a skilled attorney with expertise in securities law can significantly enhance your prospects of a successful outcome.
The Securities Attorneys at The White Law Group
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk private placements like Sims Cathcart Funding to investors.
Our firm can help you evaluate the strength of your case, draft a well-structured statement of claim that accurately presents your allegations of fraud and desired damages, and provide representation during the arbitration hearing by presenting evidence and making compelling arguments on your behalf. Additionally, an attorney can engage in negotiation efforts for a potential settlement before the arbitration process begins. Opting for a securities attorney ensures that your rights are safeguarded throughout the arbitration process, maximizing your likelihood of achieving a favorable resolution.
If you have concerns regarding your investment in Sims Cathcart Funding LLC and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states in FINRA claims against their brokerage firms.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit?https://www.whitesecuritieslaw.com.
Tags: private placement investments, Sims Cathcart Funding LLC Last modified: August 17, 2023