Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment in a Domin-8 private placement. Domin-8 is a provider of “advanced enterprise software applications and related services to the U.S. multi-family housing property management industry” based out of Ohio, according to its filing with the Securities and Exchange Commission.
Because private placements like Domin-8 are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors, according to investment fraud lawyers. Private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission. One Domin-8 private placement, Domin-8 7 percent Series C Senior Subordinated Convertible Dentures, began its attempt to raise $10,000,000 in the latter part of 2007.
FINRA Executive Vice President and Chief of Enforcement, Brad Bennett, has stated that, “FINRA continues to look closely at sales of private placements to determine whether the selling firms are fulfilling their responsibilities to customers.”
According to securities fraud attorneys, because the creation and sale of private placements often carry high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. It appears that some of the brokerage firms that sold Domin-8 failed to adequately assess the investment’s risk and made unsuitable recommendations of this product to investors.
If you suffered significant losses as a result of your investment in Domin-8, or another private placement, and you believe you were unsuitably recommended this product, you may be able to recover your losses through FINRA arbitration. To find out more about your legal rights and options, contact an investment fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.