Private Placements

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Since 1999 our law firm has recovered more than $350,000,000 for victims of investment fraud and misconduct.
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
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  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million
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Private Placement Investment Fraud Attorney

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 works and the risks involved.

Brokers and financial advisors 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 fraud, but you should be aware that even the most well-known are inherently risky and should be considered carefully before handing over your cash.

What Is a Private Placement?

A private placement is a non-public offering used to raise capital. An offering that is not a public offering is exempted under Regulation D of the Securities Act from SEC registration. These investments are often sold to "accredited investors" by various broker-dealers. Private placement investments are generally illiquid, meaning they cannot be readily sold and are not traded on the open market. Private placements are typically promissory notes or shares of common stock.

Private placements have come under intense scrutiny following highly publicized failure at Medical Capital, Provident Asset Management, and Striker Petroleum. Other private placement investments include IMH Secured Loan Fund and DBSI.

Broker-dealers who sold these private placements include:

  • Securities America
  • Capital Financial Services
  • National Securities
  • CapWest
  • Independent Financial Group

These broker-dealers sold millions in toxic private placements earning large commissions along the way. The private placements were often sold to clients as low-risk, safe investments suitable for retirees and as part of the fixed-income component of a client's portfolio. In reality, these investments were not low-risk as represented; in fact, these were one of the highest risk investments possible. Broker-dealers often also failed to perform even the most basic due diligence into the companies whose securities they were selling.

What Are Potential 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?

Private placements are complicated investment tools involving sales of unregistered securities, which operate outside of the stock market. Small businesses often issue these securities as a method of raising capital. Due to the complex nature of the investments, they are generally marketed to mutual funds, pension funds, institutions such as large banks and insurance companies, and sophisticated individual investors.

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. 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 if you would like to get started with a free consult!

The Meyer Wilson Way

Results-Focused Representation
  • More than $350,000,000 Recovered
  • Voted Best Lawyers in America┬« for Ten Years Running
  • David Meyer is President-Elect of Public Investors Advocate Bar Association (PIABA)
  • Over a Thousand Investor Claim Cases Since 1999
  • Exclusive Focus on Investor Claims & Class/Mass Action Lawsuits
  • Deep Bench of Skilled Attorneys and Staff Members

TRUSTED BY OVER 1,000 INVESTORS

Meyer Wilson has represented over 1,000 individual investors in high-stakes claims across the country, and has recovered over $350 million on their behalves. See what former clients have to say about our team.

  • “I primarily worked with Courtney Werning throughout the process and she was informative and knowledgeable. I trusted and fully recommend Courtney and her team.”

    - S.R.
  • “The communication throughout the process was on par - and they took the time to indulge me with the various questions and opinions.”

    - R.G.
  • “What I truly appreciated was getting a great result for my Mom with limited involvement/stress on her.”

    - S.W.
  • “We went to arbitration with the other respondent and I got to see firsthand the level of professionalism and expertise the Meyer Wilson firm can deliver.”

    - D.V.
  • “Chad would take the time to call and talk with me. His explanations were always clear and concise. I also appreciate all the effort put into the details and statistics required to argue this case.”

    - P.N.
  • “Meyer Wilson was able to produce the results that we felt were obvious and warranted while several other firms and even state offices simply had trouble understanding let alone moving the case forward.”

    - B.K.
  • “My overall experience was positive and I would encourage anyone who even thinks they have been a victim of stockbroker misconduct to call David.”

    - S.T.
  • “Meyer Wilson represented me in a suit brought last year against my brokerage firm, securing a very fair and equitable settlement for me.”

    - R.G., M.D.
  • “Right from the start, you had the passion and desire to win this case for us. I have never worked with an attorney or firm as compassionate as yours. I would highly recommend your firm to anyone.”

    - G.A.
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