If you are have suffered losses investing in Aequitas Capital Management, you may be able to recover your losses. Please call Kons Law Firm at (312) 757-2272 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
What Happened to Aequitas Capital Management?
According to the recent SEC action, Aequitas Management raised more than $350 million from over 1,500 investors nationwide through the issuance of promissory notes carrying rates of return ranging from 8.5 to 10 percent. Aequitas and its management team was accused by the SEC of defrauding investors by leading them to believe that they were making investments when in fact their money was being used as a last ditch effort to save the firm. The SEC alleges that by July 2014 Aequitas knew that redemptions and interest payments to prior investors were being paid primarily from new investor money in a Ponzi-like fashion.
Since at least 2003, Aequitas Commercial Finance, LLC raised hundreds of millions of dollars through its “Private Note Program”. Aequitas sold these notes in part through a network of registered investment advisers (RIAs), some of which were owned in part by an affiliate of Aequitas. In addition, to Aequitas Commercial Finance, Aequitas raised funds by selling promissory notes to investors through the various Aequitas Funds – which were also sold in part by Aequitas’ network of registered investment advisers.
How Can Aequitas Investors Recover their Losses?
Aequitas investors who were sold Aequitas promissory notes by an investment adviser or investment advisory firm may be able to pursue recovery of their losses directly against that investment adviser or firm through securities litigation or arbitration.
Investment advisers owe a fiduciary duty to their clients, which requires that they avoid conflicts of interest, and only recommend investments which they have conducted thorough due diligence on and that are in the client’s best interest.
Some of the investment advisers and advisory firms that sold Aequitas promissory notes to their clients may have breached the fiduciary duty that they owed their clients, and may have been negligent in their recommendation of the Aequitas promissory notes. In those cases, investors can pursue recovery of their investment losses directly against the investment adviser or investment advisory firm that sold Aequitas to them.
What Can Aequitas Investors Do?
If you purchased an Aequitas promissory note or participated in the Aequitas Private Note Program through your investment adviser or investment advisory firm, please call securities attorney Joshua B. Kons at (312) 757-2272 for a free, no obligation consultation about your recovery options.
The Law Offices of Joshua B. Kons represents investors nationwide in securities arbitration and litigation matters. To learn more about the firm’s securities litigation and arbitration practice, please visit www.investmentlossattorney.com.