Investors in Sierra Income Corporation (“Sierra”), or a similar non-traded investment product may be able to recover losses on their investments through FINRA arbitration. The attorneys at Law Office of Christopher J. Gray, P.C. have considerable experience in representing aggrieved investors who have lost money due to unsuitable recommendations to purchase securities, including illiquid non-traded investment products.
According to publicly-available SEC filings (from May 2016), Sierra made a tender offer to purchase up to 1,005,447 shares of its issued and outstanding common stock. In connection with this tender offer, 855,215 shares were validly tendered at a price equal to $8.04 per share. Unfortunately, for many investors in Sierra, it would appear that the tender offer price represents a significant loss on the initial capital investment.
In January 2017, the Financial Industry Regulatory Authority (“FINRA”), as part of its ongoing efforts to ensure the integrity of financial markets and offer protection to investors, issued certain guidance through its ‘2017 Regulatory and Examination Priorities Letter.’ Among those concerns highlighted by FINRA were issues related to so-called ‘alternative’ investments such as non-traded real estate investment trusts (“REITs”) and non-traded business development companies (“BDCs”):