Specifically, potential claims involve the Icon Leasing Fund Eleven LLC and Icon Leasing Fund Twelve LLC. Allegedly, the advisor who sold the investments did not adequately explain that the funds operated as an equipment leasing program. The nature of the investment, in which capital is pooled for equipment subject to a lease, made it very risky and illiquid.

According to securities arbitration lawyers, during the offering period, the funds paid healthy distributions. However, not long after the funds were no longer for sale to new investors, the investment’s value began to rapidly decline and dividend payments became erratic. On December 31, 2012, Icon Leasing Fund 12 had suffered a 53 percent loss in value from the original offering price. For the same time period, Icon Leasing Fund Eleven suffered a staggering 84 percent decline in value.

Under FINRA rules, firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. According to investment fraud lawyers, many brokers are motivated to make unsuitable recommendations because of the large commissions. In the case of the Icon Leasing Funds, SEC filings reveal that 18 percent of individuals’ investment was used to pay commissions, expenses and fees.

If you received an unsuitable recommendation of Icon Leasing Fund Eleven and/or Icon Leasing Fund Twelve and suffered significant losses as a result, you may be able to recover your losses in FINRA arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

Like any private placement, the high risks associated with Icon Leasing Fund Eleven investments are only appropriate for sophisticated, high-net-worth investors. However, according to securities arbitration lawyers, the commissions offered to brokers and brokerage firms for this investment were high enough that some broker-dealers recommended this investment to clients for whom it was unsuitable without adequately disclosing the risks associated with the investment. Furthermore, stock fraud lawyers say information that is now available indicates that many of the firms selling the product did not adequately perform the necessary due diligence.

The following investments made up the bulk of Icon Leasing Fund Eleven’s portfolio as of March 21, 2012:

• A term loan to Northern Leasing Systems Inc. affiliates.
• The Teal Jones Group and Teal Jones Lumber Services plant, equipment and machinery.
• A 45 percent interest in a semiconductor manufacturing equipment ownership joint venture.
• A Heuliez SA and Heuliez Investissements SNC auto parts manufacturing equipment lease.
• A 55 percent interest in a plastic films and flexible packaging manufacturing equipment for consumer products ownership joint venture.
• The Senang Spirit, a crude oil tanker.
• A 6.33 percent interest in a machining and metal working equipment ownership joint venture.

If you are an Icon Leasing Fund Eleven investor, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.