Legal Question in Investment Law in California

what are my options to remedy this

In 1992 we invested $12,000.00 in a limited partnership through our financial advisor,he said it was a good investment. It was supposed to last about one to three years with the customers paying off their mortgage loans and then we also would get a profit. Plus we were supposed to receive interest while waiting for the partnership to close. After 20 months, no more interest because the customers all forfeited on their loans and the general partner had to foreclose on all properties and sell them off. I have only received to this date about $4878.00 as return of capital, no more interest, no profit and the partnership is still on going. They can not tell me when I will get the remainder of my funds about $7,122.00, let alone any profit because they say they can not predict the real estate market, especially in the Inland Empire of California, where the forclosures are located. I have asked

them this question by phone a while back and that was the answer I was given. I am wondering if any thing

can be done, especially now that I am retired and I thought I would have use of the investment money funds,

since the fund was supposed to last only 1 to 3 years.


Asked on 9/17/03, 8:49 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: what are my options to remedy this

There are (at least) three possibilities here. Number one is that you were defrauded in some way, either by inadequate or false disclosures in the promotion of the investment. Possibility #2 is that there is no fraud, but the investment wan't fundamentally a good one. The third possibility is that the investment will pay off handsomely, but you'll just have to be a little more patient.

My guess is #2, but I wouldn't rule out the others.

The only way to uncover fraud or illegally-inadequate disclosures is through investigation by (or with) someone who is very knowledgeable about securities law and investment fraud. Unfortunately, those kinds of investigations can be prohibitively expensive for small investors like yourself.

A good starting point might be to contact some of the other limited partners. I believe you are entitled to ask for a list.

If you contact me directly with more particulars, I would be willing to do some FREE additional research and give you a more personalized recommendation.

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Answered on 9/17/03, 9:10 pm


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