If you have suffered losses investing in the Vertical US Recovery Fund or Vertical U.S. Recovery Fund II, CALL (860) 920-5181 for a FREE Consultation regarding your investment loss recovery options.
Upon information and belief, the Vertical US Recovery Fund and Vertical U.S. Recovery Fund II were investment funds that were offered through a private placement securities offering which sought to raise capital to purchase and invest in distressed mortgage notes or mortgages following the 2008 real estate market crash. According to SEC filings, these funds used broker-dealers to sell interests in the funds to retail investors.
Although the Vertical US Recovery Fund and Vertical U.S. Recovery Fund II may have performed well initially, upon information and belief at least one of the funds has stopped performing and is subject to a bankruptcy alternative known as an "Assignment for Benefit of Creditors". This alternative to bankruptcy may ultimately make each investors interest in the fund worthless.
Private placement investments in mortgage notes such as the ones offered by Vertical US Recovery Fund and Vertical U.S. Recovery Fund II are by their nature very risky investments in that there is virtually no oversight from a regulatory agency. Moreover, investors in private placements often face significant problems exiting the investment as the securities they purchased in the private offering cannot be easily resold or liquidated as would be the case with a publicly traded security.
While investors can be attracted to private placements due to their potential for much higher returns than other investments, private placements also can be fertile ground for fraud due to a lack of thorough due diligence or complete disclosure in the offering documents. Moreover, the sales process of private placements creates an inherent risk of misrepresentations, and outright fraud. Brokers who sell private placements typically have the chance to earn very high commissions, ranging anywhere from 5%-15% of the entire investment. These high commissions create a conflict with the broker’s duty to recommend only investments that are suitable for the customer. Customers need to remember that their wealth is not a proxy for an appropriate suitability determination.
Investors in the Vertical US Recovery Fund and Vertical U.S. Recovery Fund II May Have Recovery Options
Fortunately for investors in the Vertical US Recovery Fund and Vertical U.S. Recovery Fund II, they may be able to pursue recovery of investment losses in the Vertical US Recovery Fund and Vertical U.S. Recovery Fund II through FINRA arbitration or securities litigation if their investment was made through one of the FINRA member brokerage firms that were selling investments in the Vertical US Recovery Fund and Vertical U.S. Recovery Fund II.
If you are have suffered losses in Vertical US Recovery Fund and Vertical U.S. Recovery Fund II, you may be able to recover your though FINRA arbitration or securities litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentfraudattorneys.com.
