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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

With private placement investments, a bit of wariness not misplaced

Virtually any online overview or discussion of so-called "private placement investments" will quickly stress that, while money placed into these vehicles might indeed yield a hefty return, any certainty regarding that is far from assured.

In fact, commentators on private placements -- including our securities law firm at the Los Angeles Law Offices of Marc I. Zussman -- routinely point out the comparatively high-risk nature inhering in such products. We note on a relevant page of our website, for example, that private placement investments are "highly speculative and risky, relative to other types of investments."

Why is that? What is a private placement investment, and why should evaluation linked with the potential parking of money into such a vehicle be particularly thorough and focused?

An initial point to note about this singular type of investment is its "off-market" nature. Private placement investments are not under the comparatively heightened scrutiny that attends investments made in publicly traded stocks and other securities. As such, they are often cloaked in a type of secrecy, with relevant information regarding an investment target -- its transactions, liabilities, financials and so forth -- often not being routinely and quickly available.

And there's this additionally important point: Because such investments are a bit more off the radar scope of regulators, unscrupulous brokers and advisers are sometimes inclined to inappropriately suggest them to investors who are better served by other types of product offerings.

As noted above, the gains that sophisticated investors sometimes realize through a careful foray into such offerings are just as commonly accompanied by sizable losses for individuals who would have been better served by advice to put their money elsewhere.

When losses result from private placement investments that might reasonably owe to the bad-faith or negligent advice of an investment professional, a victimized investor can turn to an experienced securities law attorney who routinely advocates on behalf of defrauded consumers for advocacy geared toward a full money recovery.

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