Stockbrokers and investment professionals, and their firmswho sold the Noble Funds were typically awarded significant upfront commissions and “due diligence expenses.”
FINRA has also reminded its members that “In order to ensure that it has fulfilled its suitability responsibilities, a BD should, at a minimum, conduct a reasonable investigation concerning:
• the issuer and its management;
• the business prospects of the issuer;
• the assets held by or to be acquired by the issuer;
• the claims being made; and
• he intended use of proceeds of the offering.
A BD must conduct a reasonable investigation in connection with each offering, notwithstanding that a subsequent offering may be for the same issuer. (Id. at 5).
However, it was known and disclosed at the time of sale, that the Noble Royalty Access Fund, for instance, may have “charged more than 25% of the investment principal in fees, commissions, and expenses, meaning that less than 75% of the investor’s actual money would go towards the cost of properties or purchasing the properties/investments.”
According to a filing with the SEC, Noble Royalty Access Fund Five offers a 6% commission to stockbrokers who sell the product, and 16% of the money raised was used for payments to Mr. Noble, who is general partner of the fund.
As of even date, the Noble Royalty Access Fund is substantially worthless.
Investors in Noble Royalty Access Fund, and its related entities, should consult with qualified counsel to determine their legal rights.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.