ICON Leasing Funds are currently being investigated as broker-dealers may have sold funds without performing adequate due diligence when recommending them to clients. The funds engaged in the acquisition, purchasing, and leasing of a variety of equipment to third parties in the United States, Europe, and Canada. It is based in New York City and was founded in 2004.

According to ICON’s website “ICON Investments is a leading alternative investment manager that provides investment products to individual and institutional investors through publicly registered programs, private funds, and separately managed accounts.” ICON is headquartered in New York and has offices in London and Singapore. ICON launched its first investment fund in 1987, ICON Cash Flow Partners L.P. Since then, ICON has launched multiple equipment rental and leasing funds.

ICON Funds were offered as private placements, which have high risk associated with them and are intended only for high net-worth and sophisticated investors. As such, private placements are not subject to the same SEC regulations as more traditional investments.

A problem with private placements is the high commission paid to the broker-dealer. Often, this can result in misrepresentations and failure to adequately disclose to potential individual investors the risks associated with such investments. This appears to have been the case with ICON Leasing Funds. The commissions offered to brokers and brokerage firms for this investment were high enough that a number of broker-dealers recommended the investment to investors who were not suited for it and without satisfactorily disclosing the risks inherent in the investment.

Broker-dealers are obligated to show adequate due diligence on an investment before recommending it to a client. These recommendations should further be tailored to fit the investor’s tolerance for risk, financial objectives, and investment knowledge. If broker-dealers do not fulfill their duties, they may be held liable for damages lost through the FINRA arbitration process.

The Frankowski Firm, LLC is currently representing investors in FINRA arbitration claims against broker-dealers that recommended ICON Leasing Funds. If you or someone you know has lost money as a result of the ICON Leasing Funds, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies.