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.
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