If you have suffered losses in iCap Equity or any of its affiliated real estate funds, you may be able to pursue recovery of your losses through 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.
In September 2023, iCap Enterprises and its affiliated funds including the iCap Vault I LLC, the iCap Pacific Income V LLC, and the iCap Pacific Northwest Opportunity and Income Fund, all filed for Chapter 11 bankruptcy. According to the statement of financial affairs, there was $230 million raised and only $93 million in assets to cover the debt service. As a result, investors are likley to suffer a loss of more than 60% of their invested princpal. This development comes in the wake of other problems with at iCap Equity, incluidng the CEO’s resignatio and the difficulties it experienced trying to expand the firm’s real estate portfolio.
By October 2023, the Bankruptcy Court approved the Motion for Joint Administration merging the 31 Chapter 11 bankruptcy cases of iCap-associated companies under Case No. 23-01243. The following companies are the iCap affiliates that also filed for Chapter 11 bankruptcy:
- iCap Pacific Income 4 Fund LLC
- iCap Vault 1, LLC
- iCap Pacific NW Management
- VH Senior Care LLC
- iCap Pacific Development LLC
- UW 17TH AVE, LLC
- iCap @ UW, LLC
- VH Willows Townhomes, LLC
- iCap Funding LLC
- iCap Holding LLC
- Vault Holding I, LLC
- VH 1121 14th, LLC
- iCap Pacific Income 5 Fund, LLC
- iCap Vault, LLC
- iCap Broadway LLC
- iCap Realty LLC
- Senza Kenmore, LLC
- 725 Broadway, LLC
- iCap Campbell Way LLC
- iCap Vault Management, LLC
- iCap Holding 6 LLC
- VH Pioneer Village LLC
- iCap Management LLC
- iCap Enterprises, Inc.
- iCap Holding 5 LLC
- iCap Equity LLC
- iCap Northwest Opportunity Fund, LLC
- iCap Pacific Northwest Opportunity and Income Fund
- Vault Holding, LLC
- iCap Investments, LLC
- VH 2nd Street Office, LLC
Investors in iCap Equity Have Investment Loss Recovery Options
Fortunately for investors in iCap Equity, those who invested in iCap Enterprises or any affiliated iCap fund at the recommendation of a financial advisor or investment advisor can pursue recovery of their losses against the firm that the advisor was registered with. This is because securities broker-dealers that recommend the purchase of a security have a strict obligation to ensure that it is suitable for the customer. This “reasonable-basis” suitability requirement means that in the context of private placements like iCap Equity and the other iCap Funds brokerage firms have a duty to conduct due diligence on:
-The issuer and its management;
-The business prospects of the issuer;
-The assets held by or to be acquired by the issuer;
-The claims being made; and
-The intended use of proceeds of the offering.
Broker-dealers can be held liable if they violate this reasonable-basis suitability requirement. In addition, third-party firms that materially assist in a securities offering may have liability under state and federal securities laws for any misrepresentations or omissions made in connection with the sale of such securities.
How Do I Pursue My iCap Equity Investment Losses?
If you have suffered losses in iCap Equity or any of its affiliated funds, you may be able to pursue recovery of your losses through FINRA arbitration or securities litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your iCap Enterprises investment loss recovery options.
Kons Law Firm represents investors throughout the US in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentfraudattorneys.com.