Investigating Potential Securities Claims: Vertimass LLC
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Vertimass LLC to investors.
Vertimass LLC reportedly filed a form D to raise capital from investors in 2021, according to this SEC filing. The total offering amount was purportedly $6,000,000, according to the Reg D. Sales compensation was reportedly paid to Shopoff Securities.
According to the Reg D, the type of securities was Other: Raising funds for biofuel.
The company says its strategy is to “advance, demonstrate, and commercialize novel technologies to convert ethanol into hydrocarbons and license the technology to rapidly expand its impact.” According to its website, there is no assurance that this strategy will succeed to meet its investment objectives.
Risky Investments – Vertimass LLC
Regulation D, and SEC regulation, allows small to midsize companies an opportunity to raise capital from investors with less expense and reporting requirements than traditional means, making it quite popular.
Often these private placement investments are touted for their income potential and for being “non-correlated” to the stock market. Too often the financial advisor or broker ignores and/or fails to disclose the risks involved in these investments.
Private placement investments such as Vertimass LLC, are typically illiquid investments. There are often legal or contractual restrictions on your ability to transfer your holdings, and even if sale of your holdings is permitted there may be no buyers. You may need to hold these securities for an indefinite period of time.
Companies that issue unlisted securities may provide little or no transparency into their ongoing operations and financial condition.
While some private placement investments may make periodic distributions, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment– sometimes close to 10% of the client’s total investment.
Help for Investors
The White Law Group has represented numerous investors in claims against their brokerage firms for improperly recommending private placement investments.
In those claims, the firm has alleged, among other things, that the investments were (1) high-risk and unsuitable for our clients given their financial situation, needs and investment objectives, (2) that the risks of the investment were not fully disclosed to them, and (3) that the brokerage firms that sold the investments failed to conduct the proper due diligence with respect to the investments as the firms are required to do by FINRA Rules.
This information is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
Free Consultation with a Securities Attorney
If you are concerned about your investment in Vertimass LLC, you may have recovery options. If you want to learn more about your legal options, please contact the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
Last modified: August 30, 2024
