Some FINRA-licensed brokerage firms sold investments in private placements sponsored by Walton Holdings. These investments were particularly speculative, with high enumerated and hidden costs. Investors in Walton Land Fund 3 or 4 would acquire undeveloped land that had previously been purchased by another Walton entity and then sold to the Land Funds at a significant premium.
Investors Don’t Make Money
As you can see from the above table, compliments of Securities Litigation Consulting Group, Walton affiliates would purchase land and, a very short time later (sometimes simultaneously), sell it to the Land Fund with an over 50% markup.
With the upfront commissions and other costs of over 20% in addition to this markup, there is virtually no chance for an investor to make money. Yet, these products were sold and approved for sale by numerous independent broker-dealers.
These investments are non-tradeable, and the prices provided by Walton to brokerage firms over the years make it appear as if the investor is not losing any money. In fact, Walton Land Fund IV recently provided valuations reflecting a 20% growth in the product while it was literally changing hands in the secondary market at less than 30% of that value.
Get In Touch With Securities Fraud Attorneys Now
If you or someone you know has lost money in a Walton Land Fund investment, please contact Oakes & Fosher. We handle these types of cases nationwide. All cases are handled on a contingency fees basis, meaning if we don’t collect for you, then there are no attorney fees. Please call now or complete our online form for a free consultation.
