HJ Sims Investors Who Suffered Losses Should Contact Our Broker Fraud Lawyers Today. Brokerage Firm May Have Defrauded Customers With Sale of Reg D Offerings
Herbert J Sims (HJ Sims) is being investigated by Shepherd Smith Edwards & Kantas over allegations that its brokers sold unsuitable, perhaps even fraudulent proprietary private placement offerings to customers. Shepherd Smith Edwards and Kantas Broker Fraud Lawyers (investorlawyers.com) are looking into these claims and speaking to investors who may have been harmed.
Over the last decade, HJ Sims has sold at least 93 Regulation D private placement offerings collectively valued at about $2.2B. The broker-dealer exclusively sold 84 of these products, many of which its own executives are believed to have set up and controlled—setting up a possible conflict of interest from commissions or fees to be earned on both the offering and selling ends. A lot of these HJ Sims bonds have since defaulted. At least 43 HJ Sims Reg D offerings purportedly did not submit state-mandated yearly registration forms.
SLCG Economic Consulting contends that HJ Sim’s Reg D offering program may have allegedly been set up so its executives could use client funds to place large bets even as they kept the gains and left retail investors with most of the losses. The brokerage firm is also facing allegations that it was negligent in how it structured these proprietary investments and inflated their prices when listing them on account statements.
Meanwhile, HJ Sims brokers have been accused of unsuitable marketing and selling private placements to retail investors and conservative retirees. These private placement offerings should only have been promoted to accredited, experienced investors who could understand the risks that they were agreeing to become involved in.
The Importance of Hiring Trusted Reg D Investment Loss Recovery Attorneys
Shepherd Smith Edwards and Kantas Broker Fraud Lawyers represent investors who have sustained serious losses in Regulation D offerings. Typically high-risk, unregistered private placements, these investments can even be too risky for accredited and sophisticated investors. In certain instances, these private placements may also prove fraudulent.
This is why it is important that your broker-dealer conduct the necessary due diligence to ensure appropriateness for a customer, as well as properly investigate the private placement offering to make sure that it is not part of any kind of scam.
If you suspect that your HJ Sims financial advisor disregarded your best interests, made misrepresentations and omissions about the risks or any material information, neglected to ensure you were fully apprised of and understood said risks, or were careless, negligent or engaged in some type of broker misconduct, our Reg D private placement lawyers want to talk to you.
Call our Broker Fraud Lawyers at (800) 259-9010 to schedule your free, initial case assessment. You can also fill out this form.