These securities carry high risk, are usually unregistered, and generally are not suitable for investors of limited means, experience or moderate risk tolerance. Many notorious investment frauds have involved the sale of bogus private placements that were in fact ponzi schemes. Other private placements may involve legitimate enterprises that are nonetheless packaged and/or sold in a reckless manner.  Sometimes brokers do not understand the investment themselves, which constitutes a regulatory lapse on their part if they recommend the security.  Other times the brokerage firm may have failed to conduct due diligence concerning the product.  These securities are particularly prone to sales practice abuse.  Until recently, private placements could not be advertised to the general public and could sales were primarily limited to “accredited investors”.   With passage of the new federal JOBS Act, however, private placements can be more freely marketed to the general public; scammers such as some brokers or issuers of securities may ramp up sales practice abuses in this area.  Attorney Siegel has litigated or arbitrated a wide range of private placement cases such as those involving Med-Cap receivables, movie production rights, real estate interests, equipment leasing, and more.

Back to Products