The Law Offices of Blum Law Group is currently investigating the LaeRoc Funds, including the Laeroc 2002 Income Fund LP, Laeroc 2004-2005 Income Fund LP, Laeroc 2005-2006 Income Fund LP, Laeroc Edge Fund LP and Laeroc Income Fund 007, LP.
The Laeroc funds are real estate private placements (under Regulation D) that were sold by brokerage firms like LPL Financial LLC and Commonwealth Financial Network. According to its website, Laeroc Funds is a real estate investment firm managing over $650 million in assets in the last 23 years and has created 14 funds. The Company focuses on income producing properties in the western US with a concentration in southern California.
Many of the Laeroc funds have suffered substantial declines in value. Laeroc 2002 Income Fund, L.P. recently announced the dissolution of the fund to its investors. While the Laeroc 2005-2006 Income Fund LP is currently attempting to raise another $11 million to $14.5 million to pay off at least $49 million of debt. This fund recently issued a cash call to investors, asking investors to contribute additional money for preferred partnership status.
In many cases, broker-dealers marketed these investments as safe and secure. FINRA recently announced that it is paying close attention to the sale of real estate funds and, in particular, the ways in which broker/dealers marketed and sold the products to investors. FINRA also requires that brokerage firms must perform reasonable due diligence on private placements such as the Laeroc Funds.
If you suffered losses in any Laeroc funds that were recommended to you by your broker, please contact Blum Law Group at 877-STOCK-LAW (877-786-2552) for a free consultation about potentially recovering your investment losses. Blum Law Group is a nationally recognized securities litigation and arbitration law firm which represents investors worldwide, typically on a contingency fee basis.