Haslelkorn & Thibaut, P.A. continues to investigate the liability of the brokerage firms that recommended the FS Energy and Power Fund (FSEP) to investors. The company has recently reported a decline in value and we may be able to help you recover your financial losses.
The company’s website says: “Market events in 2020 have impacted financial markets and disrupted the U.S. and global economies, including energy markets. The FS Energy & Power Fund focuses on investments in debt and income-oriented securities held by US energy and energy companies. FSEP is a business development company (BDC). Their investment goal is to generate current income and long-term capital appreciation.
Investors should contact our investment fraud lawyers for options to recover their losses at 800-856-3352.
FS Energy & Power Fund NAV
For investors in FSEP, NAV per share is currently $3.25 and continues to show a serious downward trend that looks like it will continue into the near future. According to FS Energy and Power, the purpose of this reduction is to ensure that the Company does not issue shares in FSEP at a price per share that is more than 25% above NAV per share. According to Central Trade and Transfer, the stock was sold in a private placement on the secondary market for $1.86 per share, indicating a significant loss for investors. The shares were offered at $1,000 per share (i.e.
Last year, on 25 March 2020, FSEP terminated its quarterly takeover offer and suspended its share buyback program, citing difficult market conditions due to the Coronavirus pandemic (COVID-19) and events related to crude oil production. The Company also suspended regular cash distributions to shareholders as of March 31, 2020.
FS Energy and Power Announcement
FS Energy & Power Fund has discontinued stock purchases. No shares from this year’s fund are slated to be refinanced as of today. FS/EIG or the Board will determine whether quarterly tender proposals can be launched with a future view on the markets and the fund’s financial state. In addition, the share repurchasing plan was closed due to market events that impacted the financial services market and disrupted the American and global economies.
The Franklin Square Energy and Power Fund Board of Directors Suspends Repurchase Program
Franklin Square Energy and Power Fond (FSEP) suspended the purchase of shares and their share market fell again. Investors can be entitled to file broker fraudulent negligence allegations if the broker advised their broker-dealer inappropriately or fails to advise them of the risks. FSEP has cited CoVID-19 turbulence and the recent sinking prices as reasons for its economic woe. In response to customer complaints about the firm, the firm has filed alleged stockbrokers and investors in relation to the FS Energy & Po. Call us today. To find out more or view a page link click here.
LPL brokers market non-traded investments to investors
A retired investor filed a federal claim in May 2017 with the FINRA in response to the ruling of the Securities and Exchange Commission. Tamber Proctor joined Securities America as a Licensed Broker but is currently not registered with a brokerage firm of Securities America. Till at least December 2020 the veteran is currently an active investment adviser at Proctor – investment advisors and insurance in Waynesboro. The alleged violations include misrepresentations by a retired investment advisor and a false statement by the older investor.
LPL Financial Overconcentrated Older Investor’s Account in Illiquid Investments
The FS energy and solar fund was certainly not the suitable investment recommendation of this retiree’s IRA. The fund’s stock price has slumped substantially. The company also announced it would cancel investor distribution. The FS Energy & Power Fund is a very risky, illiquid investment and the fund is certainly unfit for its intended IRA. The fund is a non-traded business development company (BDC) that deals with debt and equity securities of private energy and power – firms. Proctor said investors have since suspended distributions of X-Ray’s shares from February through July 2010. The retiree is an inexperienced investor not prepared to put up much stress.
The problem with alternative investment products (FSEPs) is that they involve a high level of risk. They are sold as unregistered securities and are not subject to the same regulatory oversight as traditional investment products such as stocks and bonds. Another problem is illiquidity, where it can be difficult to find a buyer if you are willing to sell the investment and you may suffer an investment loss. Haselkorn & Thibaut has represented numerous investors in lawsuits against their brokerage firms to recover losses from alternative investments such as FSEPs.
Brokerage firms selling alternative investments must perform appropriate due diligence before making any investment recommendation. They must ensure that the investment recommendation is suitable for the investor, taking into account age, risk tolerance, net assets, financial needs, and investment experience.
If you have suffered an investment loss through the FS Energy & Power Fund FSEP, Haselkorn & Thibaut can help you. We are a national investment fraud, securities arbitration, and investor protection law firm that has locations in Florida, Texas, New York, Arizona, and North Carolina. For more information about us and get a free consultation, call us at 800-856-3352.