Broker Misconduct Law Firm

Should HJ Sims Have Exercised More Caution When Marketing and Selling Its Reg D Offerings To Customers? Our Broker Misconduct Law Firm Are Continuing Our Investigation Into Investor Losses

The Shepherd Smith Edwards and Kantas Broker Misconduct Law Firm (investorlawyers.com) are taking very seriously the number of alleged investor losses related to the Regulation D private placements sold by brokerage firm Herbert J. Sims (HJ Sims). For the last 10 years or so, this broker-dealer has sold more than 90 Reg D offerings valued at over $2B, purportedly whether or not these were suitable for customers given their respective investment profiles, risk tolerance levels, or financial goals.

84 of these HJ Sims private placements were sold exclusively by the firm’s brokers, who earned steep commissions in the process. Not only that but some of the issuers for these Reg D bonds may have been HJ Sims executives. If that is true, then these individuals made money both during the issuing process and when these alternative investments were purchased.

Meantime, a number of these bonds became delinquent, some may have missed interest payments, and others reportedly did not fulfill state-mandated registration requirements. Bond prices of some HJ Sims Reg D offerings allegedly might have been inflated on account statements even after they lost most of their value. Not only that, but there are conservative retiree and senior investors claiming they were sold HJ Sims Reg D offerings.

Private Placements Are Not For Every Investor
Regulation D private placement investments are high-risk products that should ideally only be sold to accredited investors who meet particular income thresholds and have a certain level of investing experience. Also, just because someone has accrued money throughout their lifetime—common for many older seniors—this doesn’t mean they are sophisticated investors who understand the nature of alternative investments.

Reg D offerings tend to be illiquid, complex, and lack transparency. While there could be financial gains not normally associated with more traditional investments, the losses from private placements can be significant. This is why brokers should conduct the proper due diligence when selling these private placements to clients.

If you suspect that your HJ Sims financial advisor unsuitably marketed and sold these Reg D bonds, did not fully apprise you of the risks (known as misrepresentations and omissions), failed to conduct the proper due diligence to ensure these were appropriate for your portfolio, or engaged in some other type of due diligence failure, please schedule a free, no-obligation case assessment with us today. Shepherd Smith Edwards and Kantas can help evaluate whether you have grounds for a broker fraud lawsuit.

Representing Reg D Private Placement Investors For Over 30 Years

We have been fighting for retail investors, retirees, accredited investors, high-net-worth investors, and institutional investors for decades. We understand the complexity of Regulation D offerings and are familiar with the ways in which brokers engage in misconduct or negligence when marketing or selling alternative investments. We know how to maximize your chances for a full financial recovery when suing your broker-dealer for damages.

How To Contact Us About Your HJ Sims Bond Losses:

Call (800) 259-9010 today or fill out our online form.