Posted on Sep 7th, 2016
The US Securities & Exchange Commission filed its lawsuit against Aequitas about six months ago, so now seems to be a good time to evaluate what we know about the Aequitas lawsuit, the receivership, and, most importantly, how investors will recover their investment losses.
A. There is still so much we don’t know about the receivership’s finances, but none of the information we do have is good news for investors.
As investors who have read our prior articles will recall, the SEC sought and eventually received a court order establishing a receivership to manage the orderly sale of Aequitas assets, maximizing recovery for investors.
Posted on Feb 26th, 2016
These guys at Aequitas Capital may have engineered one of the largest investment losses in Oregon history, with investors losing hundreds of millions nationwide.
Posted on Oct 4th, 2016
If you’re reading this article, there is a good chance you invested in or through an entity that is now in receivership, and you probably have a lot of questions! The purpose of this article is to give you a general overview of how receiverships work so you know what to expect. Every receivership is different, but every receivership goes through four overlapping stages: 1) stabilization; 2) investigation; 3) litigation; and 4) distribution.
These four stages all support the overarching goal of every receivership—the orderly winding down of a business in a manner that maximizes value for investors.
We will come back to these four stages in a minute, but first it is important to understand the background context that gives rise to a receivership.
Posted on Jun 23rd, 2015
Financial advisors love to sell variable annuities. The reason is simple—commissions of up to 8%. If a financial advisor can sell you a $200,000 variable annuity, that means commissions of up to $16,000. Not bad for a day’s work!
Unfortunately, commissions are just about the only thing that is simple about variable annuities.
The one reason why variable annuities are almost always a bad idea is that they are too complicated for ordinary investors (and normal people in general) to understand. Seriously, have you ever tried to read a variable annuity policy? Here is just one example from an actual policy. Try to stay awake through this, because there is a lot more you urgently need to know about variable annuities: