What's the Problem with Private Placements?

Not every investment is suitable for every investor, and your stockbroker or financial advisor is held by certain rules that help ensure your money goes into investments that are right for you.

Despite this, as FINRA lawyers, we can tell you that many investors are excited about high returns and promised low risk when it comes to private placements. A broker or financial advisor may make a private placement look inviting, but fail to explain how it actually works and the risks involved. They may push these risky or outright fraudulent private placements on the unsuspecting. Unfortunately, it’s the investors who end up suffering.

Of course, not all private placement offerings constitute investment fraud, but you should be aware that even the most well-known are inherently risky and should be considered very carefully before handing over your cash.

What are Some Potentional Problems with Private Placements?

• They may lack transparency and liquidity.
• The investments can be hard to understand.
• Regulatory oversight may be slim for private placements.
• There's a risk of investment fraud.

What Can I Do if I've Lost Money on an Unsuitable Private Placement?

If you were taken in by private placement investment fraud, or if you feel your advisor or stockbroker recommended unsuitable private placements to you, it is in your best interest to talk to an experienced investment fraud attorney. The investment fraud lawyers with the Law Firm of Meyer Wilson see these types of claims often, and we offer a completely free, no-pressure consultation so that you can learn about your rights to recovery after securities fraud, stockbroker misconduct, or investment fraud.

Contact us today at 1-866-8-BROKER (1-866-827-6537). If you'd like to learn more about what we do, request a FREE copy of our book Five Signs of Investment Fraud ...And What to Do if it's Happened to You.