Did Your Broker Recommend These Vertical Funds?

Soreide Law Group is currently investigating the following Vertical Funds on behalf of our clients who have suffered devastating losses due to their broker/dealers’ recommendations into these private placements.  These securities, offered through private placement were designed to raise money for mortgages or distressed mortgage notes after the real estate crash in 2008. These funds originally performed well, but have since stopped performing. Soreide Law Group has brought several FINRA arbitration actions against stock brokers/dealers on behalf of investors who have experienced losses due to the recommendations of the following funds:
Vertical Recovery Management, LLC
Vertical Mortgage Fund I, LLC
Vertical US Recovery Fund, LLC
Vertical U.S. Recovery Fund II, LLC
Private placements are non-public offerings that are exempt from registration under federal securities law. These private placements are issued under Regulation D of the Securities Exchange Act of 1933.  This allows broker/dealers to raise money in the offering of private placements free from disclosures required of the public securities. They are generally illiquid securities, and issuers have no duty to offer liquidity to investors wanting to sell the placement back. Investors considering a private placement offering may only receive limited information. These private placements are high-risk investments due to the lack of oversight by any regulatory agency. Investors are sometimes attracted to private placements due to the potential for higher returns than other investments. But the private placements can also be susceptible to fraud because of lack of due diligence or disclosure in the offering documents.
On September 9, 2015, Vertical Mortgage Fund I, LLC, Vertical US Recovery Fund LLC and Vertical U.S. Recovery Fund II, LLC commenced General Assignments as provided for under California Law to Development Specialists, Inc., solely in its capacity as Assignee for the benefit of creditors of those respective entities. The General Assignment for the Benefit of Creditors process is similar to liquidations administered under Chapter 7 of the United States Bankruptcy Code; however, California state law controls rather than federal bankruptcy law. California law provides the Assignee the rights of a lien creditor, ensuring that the Fund’s creditors and members positions are preserved in the same priority they had at the moment immediately preceding the making of the Assignment.
If your broker/dealer over-concentrated your portfolio with Vertical Funds which were unsuitable for your investment goals and you feel your broker or financial advisor misrepresented the risks for your otherwise conservative portfolio, call Soreide Law Group for a no-cost consultation with an experienced securities lawyer on the possibility of recovering your losses at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA.  We operate on a contingency fee basis.  Let our years of experience work for you.