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The national securities and investment fraud law firm, Levin Law, P.A. (“Levin Law”) is investigating losses related to investment in YS ALTNOTES I LLC and YS ALTNOTES II LLC (“YS ALTNOTES”) offered by YieldStreet Management, LLC.
YieldStreet began offering YS ALTNOTES as “borrower payment dependent notes” (“BPDNs”) according to a private placement memorandum issued by the company. The Notes were available to select investors for a minimum investment amount of $5,000 and a maximum offering amount of $500 million.
Investors in YS ALTNOTES were made to rely on data supplied by YieldStreet regarding the underlying loan. The borrowers of these loans are undisclosed to investors and must depend on the borrower making payments in order to receive a return on their investment. If a borrower defaults, the investor can suffer substantial losses.
The Wall Street Journal recently reported that two regulatory agencies, the U.S. Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI), were both investigating YieldStreet and their “practices and interactions with customers, including how the firm marketed certain deals.” Investors quoted in the article stated that YieldStreet failed to disclose material information regarding their investments, believing that they were diversifying their portfolio when, in fact, the underlying loans were going to the same undisclosed borrower.
According to the Wall Street Journal’s reporting, YieldStreet is currently trying to recover investor money related to certain defaulted loans. Investors have called for transparency in lending, particularly after several ships used as collateral in some maritime loans “disappeared across international waters.”
YieldStreet had promised to give individual investors access to high-yielding, low-stock-market-correlated investment “opportunities usually only available to institutions.” Asset classes offered by YieldStreet include investments in real estate, marine, art, and others.
Because borrowers remain unnamed, investors have to rely on YieldStreet to provide accurate information and data regarding the investment and the risk involved. When a loan defaults, investors do not get paid. According to publicly available information, multiple loans across several asset classes held by the company are in default.
If you have suffered losses related to investment in YS ALTNOTES I or YS ALTNOTES II, or another YieldStreet offering, contact Levin Law managing partner Brian Levin at (305) 402-9050 or via email at firstname.lastname@example.org. Most cases are accepted on a contingency fee basis, meaning that you are not responsible for Levin Law’s attorney fees unless money is recovered on your behalf.
Levin Law is a premier national securities and class action law firm with significant experience. Brian Levin, Levin Law’s founding attorney, has helped recover over $100,000,000 through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.