Posted October 4, 2023
Menu
Menu
Invested in
Attention iCap investors: contact investor lawyers for a free evaluation of your potentiall claims for compensation today.
✓ Are you an investor in iCap Equity, iCap Vault, iCap Enterprises, or any of the related entities?
✓ Did you invest in iCap Equity or iCap Vault note offerings at the recommendation of a financial advisor or investment professional?
✓ Are you concerned about the recent bankruptcy filing by iCap following the alleged suspension of iCap Equity investor distributions?
✓ Would you like your potential options for compensation or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
Contact Us About Your Investments in
Free Case Evaluation
Posted October 4, 2023
The investor rights attorneys at Rosca Scarlato LLC law firm have been evaluating potential compensation claims on behalf of investors in iCap Equity and iCap Vault notes.
Many of the iCap investors may be able to seek compensation for their losses from third-party financial advisors or investment advisory firms that recommended the iCap investments to them.
iCap investors interested in evaluation of potential options to seek compensation and/or pursue claims related to their iCap investment may contact investor rights attorneys Alan Rosca, or Paul Scarlato. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Attorneys Rosca and Scarlato have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law, investment fraud, and/or Ponzi schemes, and are currently evaluating potential claims on behalf of investors in iCap Equity, iCap Vault, and related funds.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful.
Concerned iCap investors may contact attorneys Alan Rosca or Paul Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Updated November 7, 2023
According to a recent article by Investment News that quoted investor rights lawyer Alan Rosca, a partner at the Rosca Scarlato LLC law firm who often represents victims of investment-related misconduct, iCap investors have started pursuing claims for compensation against financial service firms that employed advisors who recommended iCap.
The Rosca Scarlato investor rights lawyers have been in touch with many iCap investors and are preparing claims for compensation on behalf of some of those investors, against the financial service firms that recommended iCap to them.
iCap’s bankruptcy case is in early stages, and currently pending in the Eastern District of Washington United States Bankruptcy Court. iCap’s bankruptcy filing suggests that its current liabilities are likely far in excess of its assets.
In his interview to Investment News, investor attorney Alan Rosca estimated, based on his review of various bankruptcy records and other evidence, that iCap investors are likely to only recoup a small portion of their initial investments from the iCap bankruptcy.
Attorney Rosca, who has represented thousands of investors who lost money as a result of financial misconduct, has indicated that some, but not all, of the iCap investors may have claims for compensation in addition to any recovery from bankruptcy, against some of the securities broker-dealer firms that recommended those iCap investments.
iCap investors who bought iCap investments at the recommendation of a financial professional and would like to learn more about their options may contact the Rosca Scarlato investor rights lawyers Alan Rosca or Paul Scarlato for a free, no obligation case evaluation via email at arosca@rscounsel.law, toll free at 888-998-0530, or by leaving a message using a contact form on this page.
Potential Compensation Claims
Updated October 10, 2023
Last week, iCap sought court permission to enter into an agreement with a Lender for a loan of up to $6.75 million. The interest rate on the proposed loan is 18%, plus an additional 4% default rate, in case of a default. However, in addition to that interest rate iCap would be required to pay to the Lender substantial fees, as follows:
The proposed loan would mature within 12 months of the earliest of certain events including the closing of a Bankruptcy Sale, iCap’s Chapter 11 bankruptcy plan, and the conversion of iCap’s bankruptcy to Chapter 7.
As an illustration, if iCap borrowed the maximum amount of $6.75 million and the loan duration was one and a half years (18 months), the interest rate and fees would be as follows:
The $8.775m clearly represents a substantial amount of money that will be deducted from whatever recovery may become available to iCap’s investors through the liquidation of iCap’s assets. iCap investors may review the proposed loan agreement here and should reach their own conclusion as to the content of that agreement, as well as the totality of the terms in the agreement. Terms capitalized in the discussion of the blog are defined in the agreement.
The Rosca Scarlato investor rights lawyers continue to investigate potential recovery options for the iCap investors and are preparing to file claims on behalf of certain investors against financial industry firms that employed investment advisors who recommended iCap to their customers. The Rosca Scarlato attorneys’ investigation is focused on red flags that should have alerted financial industry firms that had a duty to conduct due diligence before recommending iCap to their customers, and the suitability of the iCap investment recommendations to many of the iCap investors, given the high degree of risk involved in investing in iCap.
Investors who would like to learn more about their potential recovery options may contact Rosca Scarlato attorneys Alan Rosca and Paul Scarlato at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this page.
Potential Compensation Claims
Updated October 9, 2023
The single largest cash outflow in iCap Enterprises’ consolidated budget forecast for the next ten months is restructuring fees, in the amount of $5,321,000. By comparison, principal repayments to creditors are forecasted to be $5,000,000 during that same time period, suggesting that the bankruptcy professionals will make more money from iCap Enteprises’ bankruptcy than iCap Enterprises’ creditors during that time period.
Of the total projected receipts of $7,416,000, the $5,321,000 in restructuring fees is the single largest cash outflow item in the consolidated budget submitted to the bankruptcy court. The budget is marked as “draft – subject to change.” Investors can access the consolidated budget forecast here: iCap Budget Forecast dated October 5, 2023.
The Rosca Scarlato attorneys have been in contact with iCap investors and are preparing to take action and seek compensation for investor losses. Their focus is on certain financial industry members that recommended iCap investments to their customers despite apparent red flags surrounding iCap entities. Investment firms and their professionals typically have a duty to conduct adequate due diligence as to an investment product before recommending that product to customers. iCap investors may contact Rosca Scarlato securities attorneys Alan Rosca and Paul Scarlato to request a free, no-obligation evaluation of their situation and potential recovery options, via email at arosca@rscounsel.law, toll free at 888-998-0530, or through the contact form on this page.
Updated October 6, 2023
Court documents filed by the iCap’s newly-appointed Chief Restructuring Officer (“CRO”) indicated that iCap’s former CEO Christensen “made clear he does not intend to assist the [iCap] Debtors without the approval of his Consulting Agreement.” The proposed Consulting Agreement provides for fees of $16,666 monthly payable to Christensen, according to said court documents. iCap’s CRO indicated that the iCap Debtors need Christensen’s cooperation because he “holds essential institutional knowledge” regarding the iCap Debtors’ real estate assets, status of development projects, and iCap’s vendor, investor, and other business relationships.
Christensen resigned all positions with the iCap Debtors on September 28, 2023, and the CRO now has full and exclusive control and authority over the iCap Debtors and the prosecution of their bankruptcy cases.
iCap investors have reportedly not received distribution payments on their note investments for months. There are almost 2,000 individual investors in iCap around the United States, including many investors within the Chinese-American community, according to court filings.
The Rosca Scarlato attorneys have been investigating the iCap matter for months, before the current bankruptcy proceedings were filed. They have reviewed a considerable volume of records to identify evidence to support potential claims for compensation on behalf of iCap investors. Their focus is on the investment firms that employed professionals who recommended iCap to their customers. The Rosca Scarlato attorneys believe that the iCap investments were highly risky and not suitable for many investors, and also that several important red flags surrounded some of the iCap securities offerings. Investment firms typically must conduct due diligence before recommending a new investment product to their customers, to ensure they understand the investment, its features and risks, and determine whether the investment recommendation is appropriate for their customers. Red flags indicative of potential issues need to be adequately investigated before an investment product is recommended to an investor.
“When financial industry members fail to conduct adequate due diligence as to investments they recommend to their customers, those customers may have claims for compensation for any losses they suffered as a result,” said attorney Alan Rosca, a principal of Rosca Scarlato and investor rights advocate. “Our law firm plans to take action and hold liable on behalf of iCap investors any financial industry members that failed in their duties to conduct adequate due diligence as to iCap before recommending that investment, or otherwise made unsuitable investment recommendations to customers,” said attorney Rosca.
iCap investors who would like to learn more about their options may contact the Rosca Scarlato attorneys in confidence, for a free, no-obligation evaluation of their situation and potential loss recovery options. The Rosca Scarlato attorneys typically work on a contingency basis, meaning they typically do not ask for any money down from their clients, advance the case expenses, and only seek payment for fees (which are a percentage of any recovery) and expenses if they are successful. Investors may contact the Rosca Scarlato attorneys at arosca@rscounsel.law, toll free at 888-998-0530, or through the contact form on this page.
Potential Compensation Claims
Updated October 4, 2023
On September 29, 2023, iCap Equity, iCap Vault, iCap Enterprises, formerly known as Altius Development, Inc., and dozens of associated companies (together “iCap”) reportedly filed voluntary petitions with the Bankruptcy Court for the United States Bankruptcy Court for the Easter District of Washington seeking relief under Chapter 11.
On October 2, 2023, the Court granted the Motion for Joint Administration consolidating the 31 Chapter 11 Bankruptcy cases filed by the iCap affiliated entities under No. 23-01243.
Below is a list of the iCap affiliated entities that filed for Chapter 11:
On September 29, 2023, iCap Equity, iCap Vault, iCap Enterprises, formerly known as Altius Development, Inc., and dozens of associated companies (together “iCap”) reportedly filed voluntary petitions with the Bankruptcy Court for the United States Bankruptcy Court for the Easter District of Washington seeking relief under Chapter 11.
On October 2, 2023, the Court granted the Motion for Joint Administration consolidating the 31 Chapter 11 Bankruptcy cases filed by the iCap affiliated entities under No. 23-01243.
Below is a list of the iCap affiliated entities that filed for Chapter 11:
The court records indicate that Chris Christensen, who reportedly founded iCap in 2007, agreed to “irrevocably resign” from all officer and manager positions held at each of the iCap companies. Lance E. Miller, of Paladin Management Group, was reportedly appointed as Chief Restructuring Officer (“CRO”), and BMC Group, Inc. as claims and noticing agent.
Pursuant to CRO’s Declaration filed on October 3, 2023 (“CRO declaration”), there are approximately 1,800 individual investors in iCap notes, primarily iCap Equity and iCap Vault, located in Unites States, China, Taiwan, United Kingdom, and the British Virgin Islands.
Potential Compensation Claims
The CRO declaration indicates that over the last few months iCap received “numerous inquiries” and demand letters from investors and several iCap investors allegedly filed lawsuits in state court, with amounts sought or subject to dispute ranging from $113,000 to $35,429,941.
In one of the investor cases, on August 14, 2023, the Court reportedly issued a Temporary Restraining Order (“TRO”), which among others, restricted iCap’s access to its bank accounts and its use of cash, according to the CRO Declaration.
In its declaration, the CRO disclosed that on August 30, 2023, the State of Washington Department of Financial Institutions, Securities Division reportedly issued a letter, demanding iCap to cease and desist from selling any unregistered securities. The WA state securities regulator also reportedly asked for delivery of certain documents by October 6, 2023, the CRO declaration reveals.
In a letter to investors dated March 2023, iCap Equity LLC, a real estate investment firm, allegedly announced its inability to make monthly interest payments to investors. The company reportedly attributed the development to the challenges posed by the current state of the real estate capital markets.
The iCap Equity securities were allegedly sold pursuant to a claimed exemption from registration under Regulation D issued by the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, which requires, among others, that securities such as those at issue here be sold typically to accredited investors. Furthermore, reports filed with the SEC and reviewed by the Rosca Scarlato attorneys reveal that iCap Equity and several related funds raised capital from hundreds of investors using a network of registered broker dealers and investment advisers.
Attorney Rosca and his colleagues have been in touch with iCap investors and reviewed a considerable number of documents related to this matter. They believe that financial advisors who allegedly recommended iCap investments to their clients may have done so by disregarding their customers’ investment objectives and risk tolerance, and without conducting adequate due diligence as to iCap and its related companies. The Rosca Scarlato attorneys believe, based on the evidence they have reviewed, that many of the iCap investors likely have claims for compensation against the advisors and firms that recommended iCap to those investors.
Investor rights attorneys Alan Rosca and Paul Scarlato at Rosca Scarlato have reviewed a substantial volume of records related to this matter and are preparing claims for compensation on behalf of some of the investors in iCap investment offerings. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are an iCap investor concerned about your investment, and believe you suffered losses, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your potential claims, or to provide useful information. All consultations are free.
The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful.
To reach attorney Alan Rosca or his colleagues, iCap investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts, and can tailor any advice to that investor’s facts. The iCap Investor Alert page is not affiliated with iCap Enterprises, iCap Equity, LLC, iCap Valut, LLC, or any other related entity.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
Cleveland area office
2000 Auburn Drive
Suite 200
Beachwood, OH 44122
Philadelphia area office
161 Washington Street,
Suite 1025
Conshohocken, PA 19428
Cleveland area office
2000 Auburn Drive
Suite 200
Beachwood, OH 44122
Philadelphia area office
161 Washington Street,
Suite 1025
Conshohocken, PA 19428
Investor Resources
About us
IMPORTANT LEGAL DISCLAIMERS
*CONTINGENCY FEE REPRESENTATION – NO RECOVERY, NO FEES:
In all class action cases, the Rosca Scarlato LLC law firm offers contingency fee representation, meaning the attorney’s fees are a portion of any recovery. If there is no recovery, then the clients are not responsible for paying any attorney’s fees or case expenses. As to non-class action cases, a small number of jurisdictions require that clients be ultimately responsible for case expenses. The terms of representation for international investors may differ. Please contact our law firm to learn more about our contingency fee representation for investment fraud victims and our terms of representation for international investors.
*NATIONWIDE INVESTOR REPRESENTATION
The Rosca Scarlato LLC law firm represents investors located throughout the United States and internationally in securities arbitration and litigation matters. Our various attorneys are admitted to practice law only in the jurisdictions disclosed on their respective pages on this website, and depending on each state and type of case may affiliate with local co-counsel for pro hac vice admission to file cases in other jurisdictions, at no additional cost to clients.
*ATTORNEY ADVERTISING; NO LEGAL ADVICE
This site contains attorney advertising material. Comments quoted on this page, made by a judge or arbitrator in any particular case, are not an endorsement of the Rosca Scarlato LLC attorney’s legal skill or ability. The responsible attorneys for the content of this website and Rosca Scarlato’s advertisements are Alan Rosca and Paul Scarlato, unless otherwise specifically indicated. Paul Scarlato’s office is in Philadelphia area and Alan Rosca’s office is in the Cleveland, Ohio area, as detailed on their pages on this website. Each case is different, and prior results do not guarantee a similar outcome in any future case. The information you review at this site is not legal advice. You should consult an attorney for individual advice regarding your case. We do not enter into attorney-client relationship through this website, or through your communication with us on this website. By continuing to browse this website you agree that an attorney-client relationship with RS is formed only upon the execution by both parties of an attorney-client agreement. Any investigation referenced on this website is independent and conducted by the Rosca Scarlato LLC law firm privately. Any information or statements contained in this website, regarding pending or past investigations, is derived from public records and should be viewed as allegations, not statements of facts, unless specifically indicated otherwise. Please check the “Legal Disclaimer” page for important disclaimers.
Copyright ©2024 Rosca Scarlato LLC | Legal Disclaimer | Privacy Policy