ATEL 16, LLC is a risky equipment leasing fund offered and sold to many investors. While some brokers or financial advisors may have sold this product as a low risk, stable, or conservative investment option, the reality is that ATEL 16 was an emerging growth company and investments in ATEL 16 involved a risk of substantial loss. If a broker or financial advisor recommended ATEL 16 to you or failed to properly explain or describe the risks and features of this product, you may have a legal right to recover your losses.
The offering price for shares of ATEL 16 was $10/share. However, the most recent activity found on the secondary market back in August 2020 suggests that ATEL 16 may be worth $2.75 a share or even less. A price decline from $10 to less than $3 would translate to a loss to investors of 70% or more of their initial principal. Such losses could be devastating to retirees and investors.
One reason brokers may have sold ATEL 16 and other similar product is due to significant fees and commissions the sale of this product generated. In fact, only 87% of an investors money actually went toward the purchase of the ATEL 16 portfolio investments. Up to 9% of the investors investment was used to pay selling commissions. Thus, an investor who bought 10,000 shares ATEL 16, of the $100,000 invested, only approximately $87,000 was used to actually make investments. The brokers selling ATEL 16 could have been paid up to $9,000.
What some investors may not have understood is that the distributions they received were likely a return of capital, NOT a return on capital. A broker conducting basic due diligence should have understood that most of the prior ATEL programs distributions had been a return of capital and not a return on capital. Thus, for most investors in ATEL programs, most of the money they received was simply a return of part of the money they had invested.
Another significant risk of ATEL 16 was the fact that the fund was considered a blind pool as a newly formed entity with no operating history. At the initial time of offering, ATEL had not specified its investments, so investors could not fully evaluate the risks from the fund. Additionally, ATEL Managing Member, LLC was the manager of ATEL 16, and the management company had conflict of interests as it continued to operate other Funds like ATEL 12, ATEL 14, and ATEL 15 which had similar investment objectives and were in competition with ATEL 16.
If you suffered financial loss because your broker recommended ATEL 16 or any other similar programs to you, you may have a right to file a claim to recover your losses. The Securities and Business Litigation team at Levin, Papantonio, Rafferty, Proctor, Buchanan, O’Brien, Barr & Mougey, P.A. has handled claims involving ATEL products and can help you recover your losses. We charge you attorney’s fees only if we recover for you.
What Our Clients Say
Below are some of the emails and letters that our clients have sent us.
At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
My husband and I were very pleased with the work that Peter and his team provided. He was very knowledgeable of the circumstances of our case and kept us informed throughout the process. He is extremely qualified and worked diligently on our behalf. We are positive that this case would not have been resolved in our favor had it not been for Peter's expertise and his passion. He definitely cares about his clients and we sincerely appreciate his efforts. Rachel C.
FRS is a governmental body. FRS retained the services of Peter Mougey of the LP law firm in a multimillion dollar lawsuit involving extremely complex issues. Mr. Mougey quickly mastered the issues and gave advice that was vital in bringing about a successful resolution. Two of the most important features of Mr. Mougey’s representation was his understanding of government and his ability to communicate complicated legal concepts to a 10-member board of trustees in language that was easily understood by all. I did not know Mr. Mougey before FRS retained him and, fortunately, have not experienced circumstances where the system would need his services again. However, if needed, I would have no hesitation in retaining his services again. Please let me know if you need any additional information or assistance. Steven S.
Edison's famous adage can't ever be ignored of course: 1 part inspiration and 99 parts perspiration. However the two attitudes must be present indissolubly--both are essential--if results are to be obtained. Peter Mougey’s group is aware of such a requirement, they work very hard at the latter, and the former comes easily to them, a rare combination anywhere to be found indeed. Raphael B.
I would like to express my sincere gratitude to Peter Mougey and your entire team on behalf of my family for the amazing job done during your representation. From day one I received kindness, rapid responses to all of my questions, with polite and patient encounters with all of your staff assistants. You are the best- and I will be eternally grateful to you and your entire team. Michelle E.