Investor Lawyers Blog
Securities fraud attorneys are currently investigating claims on behalf of investors who suffered losses as a result of their investment in ETR Pasco Fund II. ETR Pasco Fund II is, according to its Securities and Exchange Commission Form D filing, a real estate company based in Miami, Florida. Sometime between late 2006 and early 2007, ETR Pasco Fund II applied for a Form D Notice of Sale of Securities in order to generate capital. Certain Financial Industry Regulatory Authority (FINRA)-registered broker-dealers then offered and sold these private placements.
According to stock fraud lawyers, private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission. Because these investments are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors.
They also tend to carry high commissions. Securities fraud attorneys say that because the creation and sale of private placements often carry such high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. FINRA rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.
Current investigations regarding this investment are related to whether FINRA-registered brokerage firms can be held liable for improperly selling the ETR Pasco Fund II private placements and other high-risk private placements to their clients. Any investors who were recommended and sold the ETR Pasco Fund II private placements that could not be considered sophisticated, high-net-worth investors may be able to recover losses through FINRA arbitration.
If you suffered significant losses as a result of your investment with ETR Pasco Fund II, or another private placement, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.