Can your investment in ATEL 16, LLC be the basis for a FINRA arbitration claim?
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On April 20, 2022 GWG Holdings, Inc. (GWG) filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas (case 22-90032). According to an article in the Wall Street Journal, published on the same day, the bankruptcy was due to “accounting issues...read more
Have you lost money due to your purchase of shares of ATEL 16, LLC or are you unable to sell your stake in this investment? ATEL 16, per its Prospectus “[acquires] a diversified portfolio of leased equipment, equipment financing transactions and other investments, with an emphasis on low-technology equipment leased to major corporations.” Further, “[ATEL 16] will collect payments from its customers and other revenues and eventually sell the leased equipment and other portfolio investments. The Fund’s objective will be to distribute to investors the net revenues from its investments after it pays its expenses and fees.”
Perhaps unknown to investors in ATEL 16 is that as much of 12.5% of their initial investment will be immediately stripped out in the form of selling commissions and various fees. Additionally, many investors may believe that the distributions they receive from their investment in ATEL 16 is profit or interest from their investment. In fact, investors may be receiving distribution payments that are simply a gradual repayment of their initial investment – called “return of capital.”
ATEL 16, LLC is an illiquid and complex ‘Private Placement’ investment. The term Private Placement is a catch-all term that can also refer to Private Equity, Illiquid Alternative Investments, Direct Placements, Limited Partnerships, non-traded REITs, and a variety of other terms. In a recent article, our firm published a primer on the unique pitfalls of investing in private placements. This post can be found here: http://www.finraarbitrationattorney.com/should-purchase-private-placement-investment/
Private placements like ATEL 16 are complex investments that can be risky and very difficult to unload once purchased. If you purchased ATEL 16 through an investment advisor or stockbroker, and have suffered heavy losses or were misled as to the nature of your investment, you may be able to recover your money through a process called FINRA arbitration.
FINRA arbitration is a unique, narrow area of the law. The attorneys at Epperson & Greenidge have extensive experience working within FINRA and we specialize in bringing these arbitration claims on behalf of investors.
If you or a loved one has lost money investing in ATEL 16, LLC call the experienced FINRA arbitration attorneys at Epperson & Greenidge for a free consultation (877) 445-9261 or contact us on-line.