Private Placement Fraud

A claim for Private Placement Fraud may be asserted on behalf of the investor-client when the promoter, control person, stockbroker or financial advisor fails to register private placements or makes misrepresentations in connection with private placements. Private placements do not receive the regulatory oversight that public securities do. Parties who control the sale of private placements of securities often promote their higher interest rates in the current low-interest rate environment, as well as their supposed diversification to the trends of the public markets. However, the law's requirements regarding disclosure and registration, as well as the prohibitions against misrepresentation and negligent advice, fully apply to private placements.

To further discuss Private Placement Fraud, or any other claim with a securities arbitration attorney, please complete this form or call 800-520-8526.