Investors who purchased shares of Sierra Income Corp. may have suffered significant losses. Shares have decreased in value by at least 40%, although there are some estimates that the losses could add up to as much as 75%. As of publishing, shares were listed on Central Trade & Transfer for $1.50, after being originally sold for $10 per share. Sierra Income Corp. suspended its distributions in April 2020.

Investors may have purchased shares in Sierra Income Corp. through brokers registered at LPL Financial. Brokers at LPL Financial have since stopped offering these securities. Investors should know that brokers and financial advisors who sold these financial products earned commissions as high as 10%. Unscrupulous brokers may have been tempted to push these securities onto their clients, regardless of their risk tolerance and financial goals.

Sierra Income Corp is a non-traded business development company (BDC). BDCs offer investors the chance to invest in debt financing. Similar to Real Estate Investment Trusts (REITs), BDCs distribute 90% of their income in payouts and can provide a reliable source of income for investors. That said, investments like these are quite risky, and are only suitable for experienced investors who can afford to lose their investment. Non-traded BDCs aren’t sold on the public stock exchange and are especially risky.

If you bought shares in Sierra Income Corp. and you’re concerned about your investments, don’t hesitate to contact the lawyers of Fitapelli Kurta for a free consultation. Call (877) 238-4175 or email info@fkesq.com.

Leave a Comment