Erez Law is investigating customer complaints against VFG Securities and brokerage firms across the United States for overconcentration of Macquarie Equipment Leasing Fund, LLC, a private placement. Based in Australia, Macquarie Equipment Leasing Fund provides individual investors in the United States with access to global equipment leasing, deal origination, asset management, equipment remarketing and funds management expertise.
A private placement is the sale of stocks, bonds, or securities directly to a private investor, rather than as part of a public offering. As a private placement, Macquarie Equipment Leasing Fund has inherent risks, including tying up investment monies for long periods of time and risk of loss to some or all of the investment. It is the responsibility of the broker to investigate private placements throughout and determine the suitability for their clients. Additionally, it is recommended that investors in this fund have a minimum net worth of $250,000 or have an income exceeding $70,000 during the past two years.
According to a prospectus on the company website, “A purchase of shares involves high risks. You should purchase these securities only if you can afford a complete loss of your Investment.” Additionally, Macquarie Equipment Leasing Fund offered a blind pool offering that did not specify a specific investment and was not able to determine all the possible risks associated with those investments.
From April 2010 through June 2016, the fund made regular cash distributions to investors at an annual rate of 8% based on a share price of $10. The fund ceased to engage in new leasing or financing transactions as of June 30, 2016 and then began a liquidation period, according to a statement on the fund’s website. As of March 2017, the fund has had five liquidating distributions, bringing the total distributions to $5.54.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered as of results of investments in Macquarie Equipment Leasing Fund.
Erez Law represents investors in the United States for complaints against brokers for improper sales practices in the sale of Macquarie Equipment Leasing Fund. If you have experienced investment losses as a result of Macquarie Equipment Leasing Fund, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.