National Law Enforcement Museum Bond Loss

The National Law Enforcement Museum defaulted on a January 1, 2019 payment due on some of the $103 million of bonds that financed its Washington, D.C., facilities near the Smithsonian, just months after it opened in October of 2018, according to an article from Bloomberg.

The National Law Enforcement Museum opened in October, during what museum officials said is a tough quarter for tourism in the capital. According to Bloomberg, the museum posted a total operating loss of $1.9 million in the fourth quarter, and is expecting a net loss of $5.6 million in 2019. Originally, 420,000 visitors to the museum were expected, but the museum officials lowered the forecast for attendance to just 300,000 visitors in the first year. Also they cut the staff by 12% and raised the ticket prices for adult visitors $1 to $21.95.

The National Law Enforcement Museum is a three-story, largely underground 57,000-square-foot facility that dates back to President Clinton's administration, which approved the museum's site in 2000. Over the next 16 years until construction began, the museum had a number of corporate sponsors. The nonprofit supporting the museum reported a $6.1 million net loss in 2018, according to Bloomberg.

The payment shortfall makes the National Law Enforcement Museum, according to Bloomberg, one of the rare borrowers in the $3.8 trillion municipal-bond market to default on its debts.

Soreide Law Group has been contacted by investors who have suffered losses in their investment in the National Law Enforcement Museum bonds sold by HERBERT J. SIMS & CO, INC. and their brokers.

The following are the bonds issued for the National Law Enforcement Museum and their CUSIP numbers:

DISTRICT OF COLUMBIA (National Center for Law Enforcement Issue)

$48,130,000 Senior Revenue Bonds, Series 2016A

$5,675,000 7.000% Term Bonds due July 1, 2031 Priced to Yield 7.250% CUSIP

† Number 25483V QN7

$2,825,000 7.250% Term Bonds due July 1, 2036 Priced to Yield 7.500% CUSIP

† Number 25483V QP2

$39,630,000 7.750% Term Bonds due July 1, 2049 Priced to Yield 8.000% CUSIP

† Number 25483V QQ0

$30,000,000 Senior Revenue Bonds, Series 2016B

$22,935,000 5.750% Term Bonds due July 1, 2025 Priced to Yield 5.750% CUSIP

† Number 25483V QR8

$7,065,000 6.375% Term Bonds due July 1, 2027 Priced to Yield 6.375% CUSIP

† Number 25483V QS6

$25,000,000 Subordinate Revenue Bonds, Series 2016C

$25,000,000 10.000% Term Bonds due July 1, 2049 Priced to Yield 10.000% CUSIP

† Number 25483V QT4

If you or a family member have experienced losses due to the recommendations of the broker/dealer HERBERT J. SIMS & CO, INC., or another broker/dealer, in the National Law Enforcement Museum bonds contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552

Soreide Law Group represents our clients nationwide before FINRA on a contingency fee basis.