Securities Investigation: Virtua Hospitality Opportunity Zone Fund I LLC
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Virtua Hospitality Opportunity Zone Fund I LLC to investors.
According to filings with the SEC, Virtua Hospitality Opportunity Zone Fund I LLC filed a Reg D to raise capital from investors for a real estate fund in 2019. The total offering amount sold to investors was purportedly $7,812,637.
The problem with private placement investments such as Virtua Hospitality Opportunity Zone Fund I is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. Lack of liquidity can also be a problem for investors. Investments such as these 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%.
FINRA Claims for Recovery of Investment Losses
Despite the risks of investing in private placement investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation. To learn more, see: Regulation D Private Placement Fraud Attorneys
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration.
FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Free Consultation with a Securities Attorney
If you have concerns regarding your investment in Virtua Hospitality Opportunity Zone Fund I or another private placement offering, The White Law Group may be able to help you. To speak with a securities attorney about your options, please call the office at 888-637-5510 for a free consultation.
For more information on the firm’s investigation, please see:
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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://whitesecuritieslaw.com.
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