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Zamansky LLC Investigates Herbert J. Sims & Co. Inc. (HJ Sims) Over Sales of its Reg D Offerings

November 17, 2022 Blog

Zamansky LLC announces that it is investigating family-owned brokerage firm and investment bank, Herbert J. Sims & Co. Inc. (“HJ Sims”), headquartered in Fairfield, CT, over sales of its Reg D offerings.  Over the past 10 years, HJ Sims was the sole brokerage firm selling 84 private securities offerings under SEC Regulation D (“Reg D”).

In November 2022, SLCG Economic Consulting (“SLCG”) issued a report entitled “HJ Sims Reg D Offerings: Heads HJ Sims Wins – Tails, Their Investors Lose.”  SLCG’s report discussed “potential Reg D mischief” by HJ Sims.  SLCG’s report states that “far from being an efficient way for operating companies to raise capital, the Reg D program at HJ Sims appears to have simply been a way for Sims executives to place large bets with their clients’ money, keeping any gains for themselves and shifting most of the losses onto its retail clients.  HJ Sims ability to shift losses to its clients would naturally lead it to invest in riskier projects with unusually high likelihood of failure.”

According to SLCG, at least 10 of the Reg D offerings have defaulted on interest and/or principal payments.  SLCG states that these 10 defaulted bonds “were likely worth almost nothing…, yet HJ Sims values them at $75 on average.”

The Reg D Offerings identified by SLCG in the report are:

Cypress Point Funding LLC
Gryphon Finance I, LLC
Hawkeye Village Finance I, LLC
HJSI Athena Portfolio Finance LLC
Madison Funding I, LLC
Poet’s Walk Funding I, LLC
Riverchase Funding LLC
Sims Cathcart Funding LLC
Tuscan Isle ChampionsGate Holdings LLC
Tuscan Isle Holdings 1, LLC

Investment fraud attorney Jacob Zamansky says FINRA arbitration is available for investors with legal claims to recover their losses.

What Investors Can Do

To understand if you are eligible to bring a legal claim to recover your losses, please contact our firm for a free consultation.  You can email Jake Zamansky at [email protected] or call the law firm at (212) 742-1414.

About Zamansky LLC

Zamansky LLC is one of the leading law firms with a practice focused on securities fraud and financial services arbitration and class action litigation. Our firm represents both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.

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