Cases Against Brokers on IMH Secured Loan Fund

Shockman Law is currently handling cases for investors in the IMH Secured Loan Fund LLC (as of 2010 the IMH Financial Corporation).  This fund was represented to many Arizona investors as a desirable fixed income investment. These claims are being brought against Arizona investment advisors, broker dealers and brokers who made unsuitable recommendations to buy IMH, made misrepresentations about IMH, or did not conduct appropriate due diligence in the investigation of IMH before recommending it.  IMH was often represented as a secure, safe investment, appropriate for conservative or moderate investors.

Some of our clients were being sold new investments in IMH as late as the summer and early fall of 2008 when the problems with IMH were accelerating.  Investors were told the default rate on the IMH loans was very low in the summer of 2008, when in fact the default rate had risen dramatically.  Investors who wanted to sell their investment back to IMH were strongly discouraged from selling.