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Schwartz Law Continues to Investigate iCap Investments — Suspected Ponzi Scheme

The Schwartz Law Firm continues to investigate investment fraud claims related to the sale of the following investments:

iCap, iCap Broadway, iCap Campbell Way, iCap Equity, iCap Funding, iCap Holding, iCap Holding 5, iCap Holding 6, iCap Investments, iCap Management, iCap Pacific Development, iCap Pacific Income 4 Fund, iCap Pacific Income 5 Fund, iCap Northwest Opportunity Fund, iCapPacific Northwest Opportunity and Income Fund, iCapPacific NW Management, iCapRealty, iCapVault, iCapVault1 and iCapVault Management.

According to the Form D filed by iCap Equity with the Securities and Exchange Commission, the following brokerage firms and financial advisors affiliated with these brokerage firms sold and recommended iCap investments:

Advisory Group Equity Services, Ausdal Financial Partners, Inc., Cambridge Investment Research, Inc., Center Street Strategies Securities, Inc., Chauner Securities, Inc., Cobalt Capital, Inc., Financial Goal Securities, Inc., Green Vista Capital, LLC, IBN Financial, Pariter Securities, LLC, Somerset Securities, Inc. and Titan Securities.

Investors who have suffered financial losses with investments in iCap, or any of its affiliate companies, should seek legal assistance to evaluate if they can recover their losses.  Brokerage firms can be held liable for the losses of their customers if the investments were unsuitable investments, were based on misrepresentations or omissions of material facts, and/or an overconcentration of the customer’s portfolio in one particular investment, class, or market sector, as well as failure to conduct adequate due diligence on investment offerings.

What Happened with iCap Investments?

iCap Equity, a real estate investment firm based in Bellevue, Washington, filed for Chapter 11 bankruptcy protection on September 29 2023 due, in part, to its failure to repay investors. iCap Equity oversees the iCap Northwest Opportunity Fund. This Washington state based real estate investment firm focused on equity investments in real estate development opportunities.  iCap’s business was to offer both capital and lending support to small to medium-sized builders and developers in the Pacific Northwest.

iCap Northwest Opportunity Fund raised capital for the fund by filing a Form D in 2015, aiming for an offering amount of $50 million, of which an estimated 10% was designated for commissions to be paid to financial advisors. The fund’s suspension of interest payments is being attributed by iCap Equity to significant challenges in the real estate capital markets (i.e., higher interest rates and inflation).

CEO Steps Down and Interest Payments Stop

iCap Equity’s CEO, Chris Christensen, made the decision to step down from his position in March of 2023. This happened at the same time when the company stopped making interest payments to investors. Lance Miller stepped in to run the company in his role as Chief Restructuring Officer (“CRO”). The resignation of Christensen added to the uncertainty surrounding iCap Equity, as investors were left to wonder about the future of their investments. The suspension of monthly interest payments added to investor’s concerns as it suggested financial troubles for the company. The halt in interest payments was one of the warning signs that eventually led to iCap’s bankruptcy filing.

In the bankruptcy, debtors are requesting a finding that iCap Enterprises operated as a Ponzi Scheme. If the bankruptcy court grants this request, these findings could assist litigation claims and recovery efforts against third parties who conducted business with the iCap. This finding would also aid in recovery and litigation efforts by presuming that transfers and transactions were made by iCap with intent to defraud investors.

What Can I Do to Recover My Investment?

Unfortunately, this situation has resulted in significant financial losses for investors who trusted the firm with their money. iCap raised money from many investors through independent broker-dealers throughout the country. If you invested in iCap through an independent broker-dealers, you might have recourse against that firm.

If you have suffered losses from investments in iCap Equity, LLC, you can contact the Schwartz Law Firm, P.A. to consult with one of our attorneys to see if you have a viable claim. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at [email protected]

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