Reg D Private Placement Loss Attorneys

More Allegations Of Allegedly Unsuitable Investment Recommendations Continue To Haunt Broker-Dealer HJ Sims. Our Seasoned Reg D Private Placement Loss Attorneys Represent Reg D Offering Investors

Four years after the US Securities and Exchange Commission (SEC) filed civil fraud charges against Herbert J. Sims & Co. (HJ Sims) accusing it of allegedly fraudulently selling certain “highly complex and high-risk” investments to retail customers, the broker-dealer is once more under scrutiny. This time, it is investors who are crying foul over the broker-dealer’s sale of Regulation D private placement offerings, a number of which have since defaulted.

High-risk, complex, and speculative, Reg D offerings should ideally only be sold to accredited investors. Yet retail customers, including older retirees, also may have ended up purchasing them at the alleged recommendation of a financial advisor.

HJ Sims reportedly sold at least 93 of these private offerings that were worth about $2.2B over the last 10 years. It was purportedly the sole broker-dealer selling 84 of these Reg D investments, many of which allegedly came from issuers owned and/or run by its own executives. If this is true, then HJ Sims employees stood to make money from both the selling and the issuing of these bonds.

There is growing concern that HJ Sims may have inflated bond price fluctuations on customer account statements even when investors were losing money. As a matter of fact, in 2022, SLCG Economic Consulting reported that HJ Sims Reg D investments valued at around $75 may likely have been nearly worthless.  Not only that but quite a number of HJ Sims private placements failed to file yearly state-mandated registration forms.

Brokerage firms that sell Reg D private placements tend to charge high commission of 7%-12%. This can make it tempting for them to sell these offerings even when they are unsuitable for an investor.

HJ Sims Reg D Offerings That Have Defaulted:

• Sims Cathcart Funding
• Cypress Point Funding
• Madison Funding I
• Riverchase Funding
• Gryphon Finance I
• Tuscan Isle Holdings I
• Tuscan Isle Championsgate Holdings
• Hawkeye Village Finance I
• Meridian Portfolio Funding I
• Wakefield Portfolio Funding I
• HJSI Athena Portfolio Finance
• Poet’s Walk Funding I

How Can Our Seasoned HJ Sims Reg D Private Placement Loss Attorneys Help?

Over the years, Shepherd Smith Edwards and Kantas (investorlawyers.com) has represented many private placement investors in recouping their losses that were caused by broker misconduct or negligence. Our savvy Reg D bond offering lawyers have the skills, knowledge, resources, and experience to provide you with quality securities representations against HJ Sims or any other brokerage firm.

More than 90% of our clients have received full or partial financial recovery.

Call (800) 259-9010 today.