National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in Legion Capital Corporation (OTCPK: LGCP) stocks and bonds. Legion Capital has recently defaulted on bond maturity payments, suspended interest and dividend distributions, and withdrawn a planned securities offering with the SEC.
Our law firm has been contacted by investors who have suffered losses in Legion Capital Corporation due to recommendations by their brokerage firm/advisor. Our investigation has led the firm to believe many investors may have been misled regarding the risks and liquidity issues associated with this investment offering.
If your financial advisor recommended an unsuitable investment based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in Legion Capital Corporation, or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes at (888) 997-9956 or investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Legion Capital Corporation is a publicly-held private equity company that provides loans for real estate development. Despite being publicly traded (OTCPK: LGCP), the company’s stock has historically been extremely illiquid, and is listed over the counter (OTC). Legion Capital Corporation has recently suspended bond maturity payments and halted bond interest and preferred stock dividend distributions.
Legion Capital’s investment offerings include Series A-1 Bonds and Preferred Stock Shares, which were marketed and sold through independent broker-dealers and registered investment advisers. According to filings with the SEC, WealthForge Securities acted as the underwriter for these offerings. These securities were made available to both accredited and non-accredited investors, often being pitched as income-generating products with a 5.5% annualized interest rate, paid monthly.
On January 8, 2025, Legion Capital Corporation issued a memorandum addressing its inability to meet Bond maturity payments and Preferred Stock dividend distributions. According to the memorandum, Legion had not obtained the cash liquidity required to make the necessary bond payments due in early January 2025. Under the terms of its indenture agreement, Legion has a 60-day cure period to resolve these payment obligations. As required, Legion issued a default event notification to UMB Bank, the indenture trustee. Furthermore, the company has suspended all current bond interest and preferred stock dividend payments until the default is cured.
On April 3, 2025, Legion Capital filed a formal request with the SEC to withdraw its Offering Statement on Form 1-A that had been filed on January 17, 2025. In its letter to the SEC, the company stated that it had decided not to proceed with the offering and had determined it was not in the company’s best interest to continue with the proposed filing. Legion confirmed that the offering had not been qualified by the SEC and that no securities had been sold. The withdrawal was made pursuant to Rule 259 of Regulation A.
Legion Capital Corporation bonds and preferred stocks are highly speculative and carry significant risks, including:
The brokers and financial advisors responsible for selling Legion Capital Corporation stocks and bonds may be held responsible for any financial losses sustained by investors. Brokerage firms and financial advisors must consider their client’s risk tolerance prior to making recommendations, and cannot overconcentrate their customers’ accounts in any one investment product or market sector.
KlaymanToskes is a leading national securities fraud law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations. The firm has helped recover over $600 million for investors (exclusive of attorneys fees and costs), and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
If you suffered losses in Legion Capital Corporation, or any other investments, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in Legion Capital Corporation, or other investment losses, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Legion Capital Corporation. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable Legion Capital Corporation investments, including preferred stock and bonds, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.