IMH Secured Loan Fund Investigation Update No. 2

This is the second update from the Alcala Law Firm’s investigation on behalf of IMH Secured Loan Fund, LLC investors. On February 16, 2010, IMH Financial Corporation filed a second amended registration statement (Form S-4/A) with the Securities and Exchange Commission (SEC) as part of their ongoing effort to restructure the company with a view towards ultimately filing for an initial public offering (IPO). IMH’s filing of a Form S-4/A registration statement with the SEC is not an actual IPO. To commence an IPO, IMH will need to go through a separate registration process with the filing of a Form S-1 and a prospectus. Once IMH’s Form S-4/A filing is approved by the SEC, IMH will solicit investor approval of the restructuring. Investors are urged to carefully read the registration statement, partcularly the “Risk Factors” section.

Was IMH Secured Loan Fund a Suitable Investment for You?

Stockbrokers and investment advisors who acted as selling agents for IMH may be liable to their customers if: (1) the advisor misled the customer into believing that IMH was a conservative fixed-income investment; and (2) the recommendation to invest in IMH was unsuitable for that particular customer. Although each situation is different, some of the factors that would make a recommendation to invest in IMH unsuitable include: (a) IMH was a solicited investment recommended by a stockbroker or investment advisor; (b) the financial condition of IMH and the risks of investing were misrepresented; (c) the customer is an unsophisticated investor; (d) the customer had a conservative or moderately conservative investment objective and a low risk tolerance; (e) the investment comprised a large percentage of the customer’s portfolio or their entire portfolio was concentrated in unsuitable and illiquid investments recommended by their financial professional; and (f) the customer is unable to bear the financial risks.

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