Did Your Broker Recommend the Private Placement, Macquarie Equipment Leasing Fund, LLC?

Soreide Law Group has filed a FINRA arbitration on behalf of our clients against VFG Securities for selling an over-concentration of the private placement, Macquarie Equipment Leasing Fund, LLC.
Macquarie Equipment Leasing Fund, LLC is an open ended fixed income mutual fund launched and managed by Macquarie Asset Management Inc. It invests in portfolio of equipment, equipment leases, and other equipment related investments. Macquarie Equipment Leasing Fund, LLC is domiciled in Australia.
A private placement is the sale of bonds or other securities to a number of investors.  These sales avoid the need for SEC registration if the securities are sold as an investment rather than for resale.
FINRA issued an alert regarding private placements because investing in private placements is not only risky but can tie up money for a long period of time.  The investor could lose some or all of their investment.
FINRA uncovered fraud and sales practice abuses related to private placements that resulted in sanctions of both firms and brokers for providing private placement materials to investors that contained inaccurate information.  This information was necessary to the investor to make informed investment decisions. Some broker/dealers failed to conduct an adequate investigation of the issuer to determine if the private placements were suitable for their clients.
The investor must be an ‘accredited investor’ which means that the investor must have a net worth (excluding primary residence) of over $1 million, or the investors must have income exceeding $200,000 over each of the last two years ($300,000 with a spouse). Also there must be a reasonable expectation that you will earn the same amount during the current year.
Private placements are not always exclusively offered to ‘accredited investors.’  An investor may be asked to invest as a ‘non-accredited investor’ if they don't meet the net worth or income criteria.  These investments are considered ‘restricted’ securities and cannot be resold without registration or an exemption from registration.  This makes them difficult to sell (illiquid) and may negatively impact the price at which they are able to be sold. Also, the issuer does not have an obligation to provide liquidity to the investor by buying back the securities when the investor wishes to sell.
If you were a client of VFG Securities or you feel your broker over-concentrated your portfolio with the private placement, Macquarie Equipment Leasing Fund, LLC, or you were not aware of the risk and illiquidity of private placements and suffered financial losses, call Soreide Law Group and speak to a lawyer at no cost regarding the possible recovery of your investment at:  888-760-6552.
Soreide Law Group operates on a contingency fee basis and we represent clients nationwide.