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

Tags: Eccleston Law, Eccleston Law LLC, James Eccleston, Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.

 

May 15, 2024
NFA Issues Order Against 50.ai Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against 50.ai Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.