Real Estate Firm Funded by Independent Broker-Dealers Faces Financial Collapse

Posted on December 6th, 2023 at 1:29 PM
Real Estate Firm Funded by Independent Broker-Dealers Faces Financial Collapse

From the desk of Jim Eccleston at Eccleston Law

In late September, iCap Enterprises Inc., a real estate investor and manager, filed for bankruptcy after raising $245 million from investors through independent broker-dealers. Subsequently, clients who purchased the high-risk securities have initiated lawsuits and arbitration claims against the broker-dealer firms involved.

As stated in court documents, iCap, active for approximately ten years, raised funds from investors to develop apartment complexes, mixed-use buildings, and senior housing throughout Washington.

Operating through more than two dozen affiliated companies, iCap and its subsidiaries seemingly possessed at least ten properties in the state. Despite assurances to investors, some of those sites remain undeveloped, leading to allegations in lawsuits. According to InvestmentNews, the lawsuits contend that iCap and its executives engaged in fraudulent activities, deceived investors regarding their development initiatives, and violated contracts and the state Consumer Protection Act.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

January 9, 2026
FINRA Sanctions Former Wells Fargo Advisor for Profile Falsification and Unauthorized Trading

The Financial Industry Regulatory Authority (FINRA) disciplined former Wells Fargo Advisors broker James E. Holmes III for misconduct tied to his falsifying customer information and unauthorized trading.

January 8, 2026
Georgia Investment Advisor Pleads Guilty to Ponzi Scheme

A former Georgia investment adviser has pleaded guilty to wire fraud after federal prosecutors accused his firm of operating a multiyear Ponzi scheme that cost investors millions of dollars, as reported by Financial Advisor News.

January 7, 2026
FINRA Releases 2026 Regulatory Oversight Report, Spotlighting Private Placement Compliance Risks

The Financial Industry Regulatory Authority (FINRA) released its 2026 Annual Regulatory Oversight Report, responding directly to member feedback and reinforcing its stated mission to protect investors and promote market integrity.