Large Commissions: The Connection That Links Record Sales of Private Placements to Higher-Risk Brokers

According to a study that was recently conducted by the Wall Street Journal, 2017 was a banner year for the sale of private placements.  In that regard, more than $710 billion was raised through the sale of private placements last year – with such securities being sold at an even faster clip this year.  What motivates brokerage firms and brokers to raise so much money via the sale of private placements?  In a word, “commissions.”

The commissions that are associated with the sale of private offerings greatly exceed the norm.  And, per the Wall Street Journal’s analysis, it seems clear that such handsome compensation rates have attracted a disproportionate share of troubled brokerage firms.  Along those lines, the WSJ found that firms which sell private placements (which constitute roughly 40% of all firms) have accounted for more than half of the broker-dealers that have been expelled in recent years.  More importantly, the Wall Street Journal found that an undue level of higher-risk stock brokers have tended to cluster within firms that sell private placement securities.

If you have concerns over the characteristics and attributes of private placements you have purchased, reach out to a private placement attorney who maintains a deep understanding of private offering fraud.  Call Chris Bebel, a uniquely qualified securities law attorney who is a veteran of the SEC and the U.S. Attorney’s Office, where he was recognized for excellence.  Chris Bebel is an accomplished Texas investors attorney who has built an impressive record of success while pursuing cases involving financial advisor fraud in Texas – and throughout the nation.  Moreover, unlike many other securities lawyers, he has achieved tremendous success in connection with cases pursued in both the securities arbitration arena and the courts.

All-too-frequently, investors who have been deceived receive conflicting information from a variety of sources.  Naturally, these dynamics tend to heighten the level of anxiety and confusion emanating from the underlying financial transactions.  Investors facing such frustration and challenges must not give up hope.  After all, state and federal securities laws have been put in place to protect the interests of investors.  If you wish to speak with someone who is capable of “separating the wheat from the chaff,” call Chris Bebel, a leading Texas investors lawyer who has been called on by numerous securities lawyers situated across the country.  To be sure, it must be understood that Mr. Bebel may determine that he cannot provide you with legal representation.  If so, he will nonetheless strive to respond to your questions in a sincere, forthright manner.  And, depending on the circumstances, he may be able to steer you to a securities law firm that may be interested in your case.  So, if you suspect that you have been taken advantage of pursuant to securities fraud in Texas, call Chris Bebel, who has received numerous accolades while serving as a securities litigation attorney.