The Law Offices of Jeffrey Pederson, PC is investigating business development company losses (BDC) in an effort to help investors. Please call 1-866-817-0201 for a free consultation with a lawyer. Investments causing concern include, but are not limited to, the following:
- Carey Credit Income Fund;
- CNL Corporate Capital Trust; and
- Sierra Income Corporation
- Franklin Square Energy and Power Fund;
- HMS Income Fund;
- Nextpoint Capital Fund;
Brokerage sales of such investments are required by FINRA, the regulatory agency overseeing securities brokerage firms, to have greater disclosure on customer statements due to the illiquidity of the investments and high commissions of these BDC products. Such a combination often leads to fraud in the sale of such products by securities firms.
So concerned is FINRA about the potential for abuse in the sale of BDC investment products that FINRA recently conducted a year long exam of member firms concerning the disclosures made concerning these investments. The exam also focused on due diligence in the recommendation of such investments, and the suitability of such investments being sold less sophisticated or risk adverse investors.
Investors suffering losses in such investments may have recourse, but time limitations can make recovery more difficult if investors do not act quickly. Please call the number above for more information.