If you suffered losses in Priority Income Fund due to recommendations by your broker/financial advisor, contact the investment loss attorneys at KlaymanToskes today at +1 (888) 997-9956 or request a free case evaluation to determine if you are eligible for recovery.
National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in Priority Income Fund to their customers.
Priority Income Fund, established in 2013, is a high-risk, illiquid closed-end fund that follows a speculative investment model. Because of its complexity and limited exit opportunities, it is generally unsuitable for most retail investors.
KlaymanToskes is currently representing investors who suffered losses in Priority Income Fund. In FINRA case no. 24-00857, the firm represents a customer who was allegedly sold a portfolio of high risk alternative investments, including Priority Income Fund by Randy Birkbine at Ausdal Financial. In another FINRA matter (case no. 25-00223), financial advisor John Chaney of Moloney Securities & Co., Inc., allegedly concentrated a customer’s account in Priority Income Fund and GWG L Bonds.
If your financial advisor recommended Priority Income Fund, or other alternative investments that were not suitable 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.
In September 2025, the fund filed a definitive proxy statement seeking shareholder approval to amend its charter in preparation for listing of its shares on a public exchange. The proposed changes would temporarily restrict stockholder sales or transfers of shares without approval following a listing in order to reduce volatility:
The fund anticipates a potential listing before December 31, 2026, depending on market conditions and board approval.
In May 2025, Priority Income Fund repurchased approximately 60% of shares tendered under its quarterly repurchase program at a net asset value (NAV) of $7.17 per share as of April 30, 2025. The program allows for 2.5% of shares to be repurchased per quarter. However, investor demand exceeded this cap resulting in about 4% of shares tendered.
Following this, the fund suspended its common share offering on May 1, 2025. Lucid Capital Markets LLC has been engaged to advise on the listing process.
If you suffered losses or are experiencing liquidity issues with Priority Income Fund, or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
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. The brokers and financial advisors who unsuitability recommended Priority Income Fund may be held responsible for any financial losses sustained by investors. Contact KlaymanToskes for more information regarding your legal options.
Priority Income Fund, launched in 2013 by Behringer Harvard and Prospect Capital Management, was created to invest in collateralized loan obligations (CLOs) backed by risky corporate debt. While marketed as an income-focused investment, the fund has drawn criticism for high fees, limited liquidity, and significant exposure to volatility. Early investors who purchased at $15 per share saw values decline within a short period, reflecting both the speculative nature of CLO equity tranches and the impact of fees. Because of its complexity, risks, and costs, many analysts view Priority Income Fund as unsuitable for most retail investors. KlaymanToskes encourages investors who suffered losses or liquidity issues in Priority Income Fund or any other alternative investment to contact the firm for a free, confidential consultation at (888) 997-9956 or by email at investigations@klaymantoskes.com.
According to Priority Income Fund’s prospectus, risks include but are not limited to:
Priority Income Fund discloses the following on its website, “An investment in shares of Priority Income Fund, Inc. (the”Fund”) involves substantial risk and may result in the loss of principal invested. This Fund may not be suitable for all investors.” (October 3, 2025)
If your financial advisor or brokerage firm omitted or misrepresented the risks of the investment to you, you may be entitled to recover your investment losses through a FINRA arbitration claim.
KlaymanToskes is a leading national securities and investment loss law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
If you suffered losses in Priority Income Fund, 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.
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.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with private placement investment recommendations is the high sales commissions brokers typically earn for selling these investments. 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 Priority Income Fund investments or any other investments, contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss 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 Priority Income Fund. These signs could potentially indicate misconduct, negligence, or other securities violations. 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 Priority Income Fund, 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.