The Law Offices of Robert Wayne Pearce, P.A. is currently investigating claims
against stockbrokers related to recommendations to purchase the various
iCap investments and is offering free consultations to those who have
suffered iCap investment losses. If you have suffered iCap investment losses,
our experienced securities litigation attorneys are prepared to discuss the
matter and provide their legal opinion as to whether you can recover
damages against the broker-dealer who recommended and sold you one or
more of the iCap investments. Please contact our law firm at 561-338-0037 or
online for a free consultation.
At the end of September 2023, it was reported that iCap Enterprises, Inc., a
real estate investment holding company and its many affiliates (“collectively
“iCap”) through which it raised capital filed for bankruptcy under Chapter 11 of
the United States Bankruptcy Code in the Eastern District of Washington. It is
estimated that iCap has perhaps $50 million in assets and over $500 million
in liabilities. It stopped making the interest payments due the investors
approximately 6 months prior to filing bankruptcy. The lopsided amount of
debt relative to the assets indicates that any reorganization or liquidation will
leave investors holding unsecured debt with substantial losses.
What Happened To My iCap Investment?
Most of the capital was raised through private placements of various forms of
debt, bonds and notes. These were high yield, high risk, illiquid investments
that stockbrokers should have been wary of and not recommended to
investors with conversative or moderate risk tolerances. Based upon what we
hear from investors, many stockbrokers misrepresented the risk of these
investments and recommended them anyway in violation of their fiduciary.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Who Are The iCap Companies that Filed Bankruptcy?
The recently filed bankruptcy is a consolidated bankruptcy intended to
benefit iCap and not the investors by wiping out the various companies
unsecured debt. You might hear that the debt is simply being restructured,
However, don’t be fooled into thinking that the holders of the unsecured
bonds and notes will get any of their money back in the bankruptcy. If you
are an investor in any unsecured bonds and notes in the following
companies, you should start exploring alternative avenues other than
themselves to recover your investment losses:
| iCap Broadway LLC | VH Senior Care LLC |
| iCap Realty LLC | iCap Pacific Development LLC |
| Senza Kenmore, LLC | UW 17TH AVE, LLC |
| 725 Broadway, LLC | iCap @ UW, LLC |
| iCap Campbell Way LLC | VH Willows Townhomes, LLC |
| iCap Vault Management, LLC | iCap Funding LLC |
| iCap Holding 6 LLC | iCap Holding LLC |
| VH Pioneer Village LLC | Vault Holding I, LLC |
| iCap Management LLC | VH 1121 14th, LLC |
| iCap Enterprises, Inc. | iCap Pacific Income 5 Fund, LLC |
| iCap Holding 5 LLC | iCap Vault, LLC |
| iCap Equity LLC | iCap Pacific Northwest Opportunity and Income Fund |
| iCap Northwest Opportunity Fund, LLC | Vault Holding, LLC |
| iCap Pacific Income 4 Fund LLC | iCap Investments, LLC |
| iCap Vault 1, LLC | VH 2nd Street Office, LLC |
| iCap Pacific NW Management |
Given the predictable outcome of bankruptcy, it is likely that investors’ only
source of recovery of their losses will be the stockbrokers and their brokerage
firms who offered and sold the securities investments to them.
Don’t Be Discouraged By The iCap Bankruptcy!
Chapter 11 bankruptcy protection is not the end of the line for investors.
Investors should seek the opinion of a skilled and experienced securities
attorney about getting just compensation for their investment losses. Broker-
dealers and their agents who misrepresented and/or made unsuitable
recommendations about the iCap investments may still be held liable for
losses in investor accounts. In other words, an account holder can still file a
FINRA arbitration against the broker-dealer to recover losses in iCap and its
affiliates bonds, notes, and limited liability membership interests for
misrepresentations, unsuitable recommendations, failure to conduct
adequate due diligence, negligence, etc. You should not let your broker-
dealer or broker/financial advisor convince you otherwise.
What Are The iCap Private Placement Investments?
Private placements is a broad term that describes securities that are not
offered for sale through a public exchange. These can include promissory
notes, private equity offerings, small start-up businesses, etc. Private
Placements are issued under Regulation D under the Securities Act of 1933.
Regulation D provides exemptions from the more rigorous Securities and
Exchange Commission (SEC) registration requirements and allows
companies to offer and sell securities without extensive disclosures. It is the
absence of standard disclosure requirements that often creates the
opportunity for fraud.
The Securities Exchange Commission, federal courts, and FINRA have all
found that brokerage firms have a duty to conduct a reasonable investigation
concerning the private placements issuer’s representations concerning the
security. A brokerage firm’s due diligence obligation also stems from
suitability obligations requiring the broker to have reasonable grounds to
believe that a recommendation to purchase, sell, or exchange a security is
suitable for the customer. In order to meet the due diligence obligation, the
brokerage firm and/or financial advisor must make reasonable efforts to
gather and analyze information about the private placement, the issuer and
its management, the business prospects of the issuer, the assets held by or to
be acquired by the issuer, the claims being made by the issuer in the offering
materials, and the intended use of proceeds of the offering. The failure to
determine this and other material information would necessarily preclude a
financial advisor from disclosing to a customer the material aspects of a
transaction.
The iCap Investments Were Sold for High Commissions!
It appears from our investigation that the iCap issuers of securities partnered
with other brokerage firms to privately sell the bonds, notes, and
membership interests to their retail customers. The commissions on such
sales by the brokerage firms were as high as 10%. Some of the firms that have
sold iCap investments to their customers include:
| Advisory Group Equity Services, Ltd. | Gardner Financial Services, Inc. |
| Ausdal Financial Partners, Inc. | Green Vista Capital, LLC |
| Bradley Wealth Management, LLC | IBN Financial Services, Inc. |
| Cambridge Investment Research, Inc. | IBS Financial Services Group |
| Center Street Securities, Inc. | Kingsbury Capital, Inc. |
| Chauner Securities, Inc. | Pariter Securities, LLC |
| Claraphi Advisory Networks, LLC | Somerset Securities, Inc. |
| Cobalt Capital, Inc. | Stillpoint Capital, LLC |
| Financial Goal Securities, Inc. | Titan Securities |
| Freedom Investors Corp. | Wall Street Strategies, Inc |
If the name of your broker-dealer does not appear on the list above, do not be
alarmed. Rather, call us at 561-338–0037 or contact us online for free
consultation to discuss whether you may have a claim to recover damages.
Recover Your iCap Investment Losses in a FINRA
Arbitration
The Law Offices of Robert Wayne Pearce, P.A. is prepared to help investors
who have sustained damages or monetary losses not only in iCap
investments but other investments in your account in FINRA arbitration. If
you were one of those investors who have suffered losses, you should seek
the immediate advice of an experienced securities litigation attorney with
more than 40 years of experience representing investors in investment fraud
and broker-dealer negligence cases. It is imperative that you seek our
consultation as soon as possible, as there are applicable eligibility rule and/or
statutes of limitation that may forever bar your claim against the broker-
dealer who sold you the iCap investments if you do not file your claim in a
timely manner.
We Don’t Get Paid Unless You Get Paid
The Law Offices of Robert Wayne Pearce, P.A. will accept most cases on a
contingency fee basis. This means if we do not recover any of your money,
you will not incur any fees owed to our firm. In other words, our attorney’s
fees are collected only if we successfully settle your case or obtain a monetary
award at the final arbitration hearing. We will also bear the cost of your case
through the litigation process, and we will be reimbursed for such costs only
if we are successful in recovering your monetary losses.
Robert Wayne Pearce, P.A. Recovers Investment Losses
The attorneys at the Law Offices of Robert Wayne Pearce, P.A. are ready and
willing to devote their experience to evaluate your case and if it has merit
achieve the best possible outcome in an arbitration proceeding. Please call us
at 561-338-0037 or contact us online for your free consultation. For over 40
years we have represented investors in arbitration and securities litigation
matters, including FINRA arbitration proceedings in nearly every state.
Contact us now at 561-338-0037 or online to schedule your free initial
consultation.
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