Vertical US Recovery Fund Recovery Options

Posted on April 3rd, 2016 at 3:14 PM
Vertical US Recovery Fund Recovery Options

From the Desk of Jim Eccleston at Eccleston Law LLC:

Vertical US Recovery Fund and Vertical US Recovery Fund II have stopped performing and are seeking bankruptcy alternatives. These were investment funds offered through a private placement securities offering seeking to raise capital to purchase and invest in distressed mortgage notes following the real estate market crash in 2008. These funds used broker-dealers to sell interests in the funds to retail investors.

Although the two funds initially performed well, at least one of the funds has since sought an alternative to bankruptcy referred to as “Assignment of Benefit to Creditors”. Using this method may result in investors’ interest in the fund becoming worthless.

Private placement investments like the ones offered by Vertical US Recovery Funds are very risky investments due to the lack of oversight by any regulatory agency. In addition, investors in private placement offerings typically face significant problems because the securities rarely can be resold or liquidated as would be the case with publically traded securities.

Investors are often attracted to private placement offerings because of the potential for higher returns than other investments. But, private placements are also susceptible to fraud resulting from a lack of due diligence or complete disclosure in the offering documents. Furthermore, these offerings have a sales process that creates a fertile ground for fraud and misrepresentations.

Investors in either of these funds may be able to recover losses. Fortunately, investors can pursue options such as FINRA arbitration or securities litigation if their investment was made through a FINRA member firm selling either of the Vertical US Recovery Funds. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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