The following blog update is being provided in response to recent inquiries from blog readers seeking information regarding the ongoing investigation by the Alcala Law Firm on behalf of IMH Secured Loan Fund, LLC investors:
- On January 15, 2010, Investors Holdings Mortgages, Inc. filed an amended Form S-4 with the Securities Exchange Commission (SEC) seeking member approval to restructure the company into a newly formed Delaware corporation named IMH Financial Corporation with the hope that IMH may someday become a publicly traded company listed on the New York Stock Exchange (NYSE). Click here to download a copy of the amended Form S-4 that was filed on January 15, 2010.
- IMH’s Form S-4 filing lists a toll-free number and website address established to allow members to vote on the proposed restructuring. However, as of the date of this blog posting, both the website and the toll-free number were unavailable. A recorded message for the “telephone proxy voting center” states that the campaign is not active.
The Alcala Law Firm’s investigation is focused on potential misconduct committed by stockbrokers who sold the IMH Secured Loan Fund to unsuspecting investors, many of them retired. Stockbrokers registered with the Financial Industry Regulatory Authority (FINRA), have a fiduciary duty to exercise due diligence to determine whether such investments are suitable for their customers and to adequately disclose the risks associated with investing in speculative and highly illiquid private placements such as the IMH fund.
Please contact us if you have additional information regarding this matter.