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Private Placement Investment and Financial Fraud Lawyers

Private placements can seem like attractive investments for individual investors seeking to maximize their returns. However, investing in a private placement is a high-risk proposition that requires a comprehensive understanding of the nature of the investment, the company offering the private placement and everything that can go wrong. Unfortunately, many brokers and advisors recommend these investments without fully disclosing the risks involved, and some private placements are fraudulent. If you have lost money investing in a private placement, you may be entitled to recover your losses through FINRA, and you should speak with a financial and investment fraud lawyer about your legal rights.

Investment Fraud Involving Private Placements

Investment and financial fraud involving private placements can take many different forms. In some cases, investors who lose money with private placements will have claims against their brokers and advisors. Private placements are unique and high-risk investments, and they are not suitable for most retail investors.

Before recommending an investment in a private placement, a broker or advisor must thoroughly research the investment and ensure that the investment is suitable to the particular investor’s risk profile. If a broker or advisor fails to take either of these steps, this can potentially give rise to a claim for investment fraud. Failing to adequately explain the risks of investing in a private placement, recommending a private placement based on a conflict of interest, and misrepresenting the nature of an investment are all grounds for pursuing fraud claims against brokers and advisors as well.

In other cases, investors will lose money as a result of putting their money into fraudulent private placements. A private placement may be fraudulent if:

  • The private placement does not comply with all pertinent federal securities laws;
  • The issuer does not provide adequate disclosures regarding the private placement;
  • The issuer misrepresents or withholds information about risks for investors; or,
  • The private placement is a scam designed to take advantage of unsuspecting investors.  

Recovering Your Losses from Private Placement Investment Fraud

Depending on the circumstances involved, there are potentially a few options for recovering financial losses from private placement investment fraud. At Zamansky LLC, our investment fraud lawyers help aggrieved investors recover their losses by:

  • Filing claims against brokers and advisors in FINRA arbitration. If your broker or advisor misled you into a high-risk private placement, you may be able to recover your losses through FINRA arbitration.
  • Filing claims under ERISA for claims involving pensions and other retirement assets. If your pension or plan manager invested in a fraudulent private placement or failed to adequately consider the risks of investing in a private placement, you may have a claim under the Employee Retirement Income Security Act (ERISA).
  • Filing claims against companies and firms that issue fraudulent private placements. If you invested in a fraudulent private placement, it may also be possible to recover your losses by filing a lawsuit against the company or firm that issued the private placement.

Discuss Your Private Placement Investment Fraud Claim in Confidence

Do you have a claim for private placement investment fraud? Contact us to find out. To schedule a free and confidential consultation with an investment and financial fraud lawyer at Zamansky LLC, call 212-742-1414 or request an appointment online now.