Securities Lawyers Blog
The attorneys at Gana Weinstein LLP are currently investigating Icon Leasing Fund Eleven and Twelve on behalf of investors who suffered losses as a result of the unsuitable recommendation of these funds. The attorneys at Gana Weinstein LLP have filed arbitrations against broker dealers that have sold these illiquid investments to their clients. Both NFP Securities, Inc. and WFG Investments Inc. have been know to sell the Icon Funds to their clients.
Allegedly, many advisors who sold the Icon investments failed to adequately explain that the funds operated as an equipment leasing program. Given the nature of the Icon Funds, in which capital is consolidated for the purchase and leasing of equipment, made the fund illiquid.
According to recent filings in securities arbitrations, during the offering period, the funds paid healthy distributions. However, not long after the funds were closed to new investors, the value of the Icon Funds began to decline and dividend payments became sporadic. By the end of 2012, Icon Leasing Fund 12 lost 53% of its value. For the same time period, Icon Leasing Fund 11 suffered an 84% decline in value. Furthermore, it has been alleged that the Icon Funds did not properly disclose that the distributions included return of original principal and that the fees were extraordinarily high.