TEI Diversified Income & Opportunity Fund III: Complaints

TEI Diversified Income & Opportunity Fund III – Secondary Sales Price

The White Law Group is investigating potential securities claims involving brokerage firms who may have unsuitably recommended TEI Diversified Income & Opportunity Fund III to investors.

Time Equities Inc. is a real estate investment, development, and asset and property management firm that sponsors private placement offerings and custom 1031 exchanges.

The company closed its offering, TEI Diversified Income & Opportunity Fund III in May 2018 after raising approximately $70 million of capital for acquisitions throughout the U.S. and select Western European countries.

TEI Diversified Income & Opportunity Fund III reportedly acquired properties across several asset classes including retail, industrial, multifamily, and office. According to the Form D, the 8.47% in sales commissions in this offering  “Includes Selling Commissions, Placement Fees, Market and Due Diligence Allowance Fees and Wholesaling Fees.”

According to Lodas Markets, a secondary market place for non-traded investments, shares of TEI Diversified Income and Opportunity Fund III recently traded for $3,065 per share, while the Net Asset Value is purportedly $5,000 per share. This may indicate big losses for investors.

The Risks of Investing in Reg D Private Placements

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products like TEI Diversified Income & Opportunity Fund III and TEI Diversified Income & Opportunity Fund IV to their clients.

Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.

Broker Due Diligence

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 in line with the investor’s age, risk tolerance, net worth, and investment experience.

Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

If you are concerned about your investment in TEI Diversified Income & Opportunity Fund III, The White Law Group may be able to help. To speak with a securities attorney about your options, please call the offices 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 Seattle, Washington.