Did you lose money investing in ICON Capital Fined by the SEC?
ICON Capital, LLC (ICON Capital) manages several equipment leasing funds and is owned by ICON Investment Group. ICON Investment Group also owns CION Investment Corporation, a non-traded business development company.
The SEC recently issued a cease and desist order to ICON Capital and also ordered it pay a civil money penalty of $750,000. The SEC issued the order and fine because of various accounting errors made relating to ICON Income Fund 9, ICON Income Fund 10, ICON Leasing Fund 11, and ICON Leasing Fund 12.
According to the SEC, inadequate internal accounting controls and misapplication of the Generally Accepted Accounting Principles, ICON reported inaccurate financial results and had inaccuracies in its books and records from 2009 through 2012 for the four funds. The SEC further stated that the accounting errors resulted in at least one of the funds not taking certain required asset value impairments, overstating post-impairment values or overstating residual values in several reporting periods, among other things. These errors resulted in net income being overstated (or net loss being understated) and fund members’ equity values being overstated.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
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. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in ICON Income Fund 9, ICON Income Fund 10, ICON Leasing Fund 11, ICON Leasing Fund 12, or any other fund offered by ICON Capital and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.