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Our experts frequently write blog posts about the findings of the research we are conducting.

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Displaying 9 out of 9 results for "Private Placements".

Walton Land Fund 4, LP: Same Scam as Walton Land Fund 3, LP

(Jul 2024)

By Craig McCann and Regina Meng

You can download a pdf of this article to print or email here.

Introduction

We have posted three notes highlighting Reg D abuse:

Walton Land Fund 3, LP: Laundering Fees and Fleecing Investors, Craig McCann and Regina Meng, available at https://www.slcg.com/resources/blog/699.

HJ Sims Reg D Offerings: Heads, HJ Sims Wins - Tails, Their Investors Lose, Craig McCann, Susan Song, Chuan Qin and Mike Yan available at ...

Walton Land Fund 3, LP: Laundering Fees and Fleecing Investors

(Jan 2024)

By Craig McCann and Regina Meng

You can download a pdf of this article to print or email here.

Introduction

We recently published an extensive study of the unregistered Reg D securities markets:

"Regulation D Offerings: Issuers, Investors and Intermediaries", Craig McCann, Chuan Qin and Mike Yan, 2023 working paper, available at www.slcg.com/files/research-papers/Reg_D_Offering.pdf.

It is hard to assess investor returns in the Reg D marketplace because there are no publicly...

Beneficient's Trading is Bad Omen for GWG Bondholder Recoveries

(Jun 2023)

By Craig McCann and Regina Meng.

We have found so many red flags in GWG Holdings' public filings years before its bankruptcy filing in 2022 that no unconflicted broker would have recommended GWG's L Bonds and no fully informed investor would have bought them. Nonetheless, $1.3 billion face value of L Bonds remained outstanding at the time of the bankruptcy. These bonds were sold by third tier brokerage firms in pursuit of undisclosed commissions as high as 8%.

We will tell a more...

First National Realty Partners Reg D Offerings: Muppets Do Commercial Real Estate

(Dec 2022)

By Craig McCann, Susan Song, Chuan Qin, and Mike Yan.

You can read our previous posts Reg D offerings:

1) "Reg D Offerings Summary Statistics" here,
2) "$8 Trillion of Broker-Sold Reg D Offerings" here,
3) "HJ Sims Reg D Offerings: Heads Sims Wins, Tails their Investors Lose" here, and
4) "Inactive and Delinquent Reg D Issuers" here.

You can download and print or email this post by clicking here.

Introduction

In a recent note, we explained how HJ Sims executives formed 91 separate...

$8 Trillion of Broker-Sold Reg D Offerings

(Nov 2022)

By Craig McCann[1], Mike Yan[2] and Chuan Qin[3].

We previously published Reg D Offerings Summary Statistics describing the aggregate issuance totaling over $20 trillion between 2009 and July 2022. You can read that post here.

In this post we provide summary statistics for Reg D offerings sold by broker dealers. You can get a pdf copy of this post to print or email by clicking here. Next week, we will be posting information on the extremely high failure rates for Reg D offerings.

I....

Regulation D Offerings Summary Statistics

(Aug 2022)

By Craig McCann, Chuan Qin and Mike Yan.

I. Introduction

Securities issuers can either register their securities with the Securities and Exchange Commission, making extensive information about their business and the offering publicly available, or they can sell unregistered securities making almost no information available to regulators. Issuers of unregistered securities file Form D reports with the SEC on which the issuers provide cursory information and claim an exemption from...

Securities-Based Lending

(Jun 2015)

In this blog post I summarize my recently published working paper, "Securities-Based Lending".

Introduction

The securities industry has long targeted the liability side of the customer's balance sheet as an opportunity to cross-sell banking products, increase wallet share, and diversify revenue streams away from cyclical trading commissions. In the current euphoric market environment, with portfolio values soaring and borrowing rates historically low, lending to customers has become "Wall...

SLCG Research: Tenants-in-Common Interests

(Jan 2013)

While we've spent a great deal of time talking about non-traded REITs on this blog, so far we've given less attention to another kind of real estate investment that has also been sold to investors based on questionable merits: tenants-in-common (TIC) interests. TICs are private placement investments that were very popular during the real estate boom of 2002-2008, but have suffered tremendously when the markets turned sour. We discussed TICs in our paper on non-traded REITs, but we felt that...

SLCG Research: Charles Schwab YieldPlus

(Jul 2009)

SLCG released today 'Charles Schwab YieldPlus Risk'

This paper reports on the Charles Schwab YieldPlus, a bond fund. YieldPlus returned -31.7% between June 2007 and June 2008. Though it told investors that it was an ultra short bond fund, it was in fact an ultra long bond fund. It held securities backed by illiquid long-term private label mortgages, violating concentration and liquidity limits stated in its prospectus. Up until 2007, these securities helped YieldPlus generate...

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