Galvin Legal is launching an investigation on behalf of investors who suffered losses investing in Cypress Income Fund VI at the recommendation of their financial advisor. If you suffered losses investing in Cypress Income Fund VI, then Galvin Legal may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
Understanding the Investment: Cypress Income Fund VI
Cypress Income Fund VI is one of several investment products offered by Cypress Income LLC. This investment company offers private placement securities to accredited investors. A private security is one that is exempt from standard registration and disclosure requirements under the SEC’s Regulation D.
According to SEC filings, Cypress Income Fund VI raised nearly 20 million from at least 394 different investors. The investment fund has offered promissory notes to investors, and the proceeds of the funding it received have been used for equipment acquisitions along with organization and operational expenses. The investment fund’s model is to acquire a portfolio of assets in capital equipment that are subject to leases. This is designed to produce income.
What You Need to Know About Private Placements
A private placement is a non-public offering of securities. Under United States law, private securities offerings are generally governed by the Securities Act of 1933. As these securities are exempt from standard registration requirements, there is a much higher risk associated with these investments.
Beyond the heightened level of risk, private placements also tend to be speculative, illiquid, and subject to high investment fees. For this reason, private placement offerings such as Cypress Income Fund VI are unsuitable investments for most investors. You should not invest in a private placement unless you fully understand and have carefully considered the risks.
Broker-Dealers Must Make Suitable Investment Recommendations
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
How to Make a FINRA Arbitration Claim
If you are considering filing a FINRA arbitration for investment losses sustained in Cypress Income Fund VI, the first thing you need to do is to speak with an experienced securities fraud lawyer. Your lawyer will be able to conduct an in-depth review of your case, including your relationship with your financial advisor and your brokerage firm, in order to determine if you have a viable legal claim.
When your securities fraud lawyer determines that it makes sense to move forward with your case, you will initiate the FINRA arbitration process by completing and submitting your Statement of Claim. This is essentially your legal complaint. This is your opportunity to lay out your side of the case. While you certainly do not need all of the evidence at this point in time — your lawyer will be able to conduct discovery later on in the process — it is crucial that you submit a FINRA arbitration claim that is well-drafted, accurate, clear, persuasive, and backed up by as much supporting evidence as possible.
How Can a Securities Fraud Lawyer Help?
If you sustained substantial losses investing in Cypress Income Fund VI, another Cypress Income financial product, or any other type of private placement securities investment, you should consult with an experienced attorney immediately.
At Galvin Legal, PLLC, we are prepared to conduct a free, comprehensive review of your claim. Our top-rated investment fraud lawyer will take the time to understand your case, will explain your options to you, and will help you take action to get the fair financial compensation that you rightfully deserve.
Did You Lose Money Investing in Cypress Income Fund VI?
If you suffered losses investing in Cypress Income Fund VI and would like a free consultation with a securities attorney, then please call Galvin Legal at 1-888-637-5573. Galvin Legal is a national securities arbitration, mediation, fraud, and investor protection law practice. For more information on Galvin Legal, please visit www.galvinlegal.com or call 1-888-637-5573.