Tag: Business Development Companies

BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

On March 7, 2021, Medley Capital Corp. (NYSE: MCC), a direct subsidiary of Medley Management Inc. (NYSE: MDLY), filed for Bankruptcy Protection from creditors – mostly investors.  Medley Management Inc., is an “alternative asset management firm offering yield solutions to retail and institutional investors” through two Business Development Companies (“BDCs”), Medley Capital and Sierra Income Corp., a non-traded BDC. Medley Capital Corp and Sierra Income Corp, invested in non-public companies, under the direction and advice of Medley Management’s affiliate SIC Advisors, LLC.  The two BDCs made loans to non-public companies that did not have access to the traditional publicly traded…

FSKR INVESTOR ALERT: KlaymanToskes Continues Investigation into Full-Service Brokerage Firms for Recommended Investments in Excess of $250,000 in Franklin Square KKR Capital II Fund Predecessors Prior to the IPO

FSKR INVESTOR ALERT: KlaymanToskes Continues Investigation into Full-Service Brokerage Firms for Recommended Investments in Excess of $250,000 in Franklin Square KKR Capital II Fund Predecessors Prior to the IPO

New York–(BUSINESS WIRE)–National investment fraud law firm, KlaymanToskes (“KT”), continues its investigation into full-service brokerage firms for the unsuitable recommendations to purchase non-traded Business Development Companies (“BDCs”) including:  FS Investment Corp II (“FSIC II”), FS Investment Corp III (“FSIC III”), FS Investment Corp IV (“FSIC IV”), and Corporate Capital Trust (“CCTII”).  These four BDCs merged into the Franklin Square KKR Capital II Fund (NYSE:FSKR) on December 18, 2019.   On June 17, 2020, FSKR announced the listing on the NYSE.  These investments, and other non-traded BDCs, may have been marketed and sold to investors who were risk averse, such as retirees…

FSKR INVESTOR ALERT: KlaymanToskes Investigates Full-Service Brokerage Firms for Unsuitable Investment Recommendations Regarding Franklin Square KKR Capital II Fund

FSKR INVESTOR ALERT: KlaymanToskes Investigates Full-Service Brokerage Firms for Unsuitable Investment Recommendations Regarding Franklin Square KKR Capital II Fund

National investment fraud law firm, KlaymanToskes (“KT”), announces an investigation into full-service brokerage firms for the unsuitable recommendations to purchase non-traded Business Development Companies (“BDCs”) including:  FS Investment Corp II (“FSIC II”), FS Investment Corp III (“FSIC III”), FS Investment Corp IV (“FSIC IV”), and Corporate Capital Trust (“CCTII”).  These four BDCs merged into the Franklin Square KKR Capital II Fund (NYSE:FSKR) on December 18, 2019.   On June 17, 2020, FSKR announced the listing on the NYSE and that “J.P. Morgan, Morgan Stanley, Keefe, Bruyette & Woods, A Stifel Company, and SunTrust Robinson Humphrey are serving as lead advisors to…

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

The new Department of Labor (DOL) Fiduciary Rule that was enacted and scheduled to begin this month on April 10th has been postponed 60 days to June 9th.  Brokerage Firms and Financial Advisors are responsible for compliance with the rules as they are now written.  Keeping in mind that the requirements may be modified or eliminated based on the what happens during the 60-day delay. Klayman & Toskes, P.A. is monitoring the developments and will keep investors posted and provide further updates as they become available. Best Interest Contract (BIC) Brokerage firms and financial advisors who recommend investment of retirement funds…

Notice to Franklin Square Energy and Power Fund Investors: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Potential FINRA Sales Practice Violations by Brokerage Firms

Boca Raton (Globe Newswire) – April 7, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announces that it is conducting an investigation into potential Financial Industry Regulatory Authority (FINRA) sales practice violations by brokerage firms for solicited investments in Franklin Square Energy and Power Fund (“FSEP”), a non-traded Business Development Company (“BDC”). FSEP assets, with assets in excess of $3.6 billion, are invested primarily in senior secured loans made to private companies focused in oil industry infrastructure for drilling and exploration. FSEP investors have experienced a decline in the value of the non-traded BDC…

Correction - The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Potential Sales Practice Violations by Cetera Advisors Related to Solicited Investments in Non-Traded REITs and BDCs

New York (Globe Newswire) – April 1, 2016 – In a release issued under the headline “The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Cetera Advisors Sales Practice Violations Related to Solicited Investments in Non-Traded REITs and BDCs” on March 24th, 2016 by Klayman & Toskes P.A., please note that the investigation was launched by the law firm into potential sales practice violations. The corrected release follows: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announces that it is conducting an investigation into potential sales practice violations by Cetera Advisors related…

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Cetera Advisors Sales Practice Violations Related to Solicited Investments in Non-Traded REITs and BDCs

New York (Globe Newswire) – March 24, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announces an investigation into Financial Industry Regulatory Authority (FINRA) sales practice violations by Cetera Advisors related to solicited investments in non-traded Real Estate Investment Trusts (“REITs”) and Business Development Companies (“BDCs”).  According to K&T, the scope of the investigation includes whether Cetera Advisors made suitable recommendations related to non-traded REITs and BDCs; whether adequate disclosure was made of the fees, costs and risks of non-traded REITs and BDCs and whether the high commissions paid to Cetera Advisors resulted in conflicts of…

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