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Written by 4:41 pm Blog, Current Investigations

StHealth Capital Investment Corp., Investigating Claims

StHealth Capital Investment Corp. BDC Liquidation, featured by top securities fraud attoneys, the White Law Group.

How to Recover Investment Losses involving StHealth Capital Investment Corp.

Have you suffered investment losses in StHealth Capital Investment Corp?  If so, the securities attorneys of 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.  

StHealth Capital Investment Corporation (formerly known as First Capital Investment Corp.) seeks to invests in private U.S. small- and middle-market companies. The BDC invested approximately $9.6 million in nine portfolio companies, as of September 2019.  STHealth reportedly filed a form D to raise additional capital from investors in 2021. To learm more see: StHealth Capital Investment Corp. BDC Securities Investigation .

According to filings with the SEC, the company has reportedly failed to file financial statements for the previous reporting period including Form 10-K and 10-Q. BDCs operate much in the same way as non-traded REITs (Real Estate Investment Trusts). BDCs pool investor money and use those funds as capital to invest in various businesses. The goal of a BDC is to invest in small and medium-sized businesses and help sustain and develop growth in those underlying businesses. When those businesses are profitable, the BDC can be a strong investment. Additionally, certain BDCs offer a desirable tax structure for investors. 

However, “middle-market loans” are basically highly leveraged loans to private equity backed companies, and come with a large credit risk. When rising interest rates and inflation lead to a recessionary event BDCs, such as STHealth Capital Investment Corp., may take a big hit. 

Potential Lawsuits to Recover Financial Losses  

The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments such as StHealth Capital Investment Corp to investors. The high commission structure of these products leads to the possibility that unscrupulous financial advisors will push these products unsuitably to maximize their own commissions.  

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. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.  

If you have suffered losses in StHealth Capital Investment Corp. and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.  

For more information on the firm’s investigation, please see: Business Development Companies BDCs – the good, the bad, and… 

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
Seattle, Washington. To learn more about The White Law Group visit www.whitesecuritieslaw.com 

  

 

Tags: , , , , , , Last modified: August 3, 2022