Somerset Securities, Inc. Addresses Recent Investment Challenges
At Somerset Securities, Inc., we take pride in our dedication to integrity and the financial well-being of our clients. We are reaching out to address recent developments regarding iCap Equity, an investment company whose securities we recommended to eligible investors starting in 2017.
Acknowledging the Unfortunate Turn of Events
We are deeply saddened by the bankruptcy and subsequent designation of a Ponzi scheme for iCap Equity. This outcome was unforeseen and represents a significant challenge for our firm, which has been serving clients for over 35 years. We sincerely regret the impact this has had on investors involved with this situation. The collapse of this investment has brought profound disappointment, emphasizing the importance we place on client trust and financial security.
Our Role and Response
iCap Equity was one of the many investment opportunities we presented to accredited investors based on their individual financial circumstances and suitability. Our firm is recognized for fostering diversification in investment portfolios, ensuring that no single vehicle dominates our clients' investments. Unfortunately, the abrupt failure of iCap has caused a substantial financial impact on those who invested.
Our firm's reputation has faced challenges, particularly with various legal actions and complaints emerging in response to this investment's failure. It is essential to clarify that while we recommended this product, we did not devise it. Our suggestions were based on our clients' qualifications and our belief in the investment’s potential at that time. Although hindsight grants clarity, we aim to make informed recommendations based on present information.
The Path Forward for Our Clients
As we navigate through the initial shock surrounding this investment's collapse, there are positive aspects to consider that might offer some relief. We remain committed to informing our clients about all available recovery options:
Tax Benefits
The court's designation of iCap Equity as a Ponzi scheme has opened up significant tax deductions that may help alleviate some financial burdens for investors. We strongly encourage our clients to consult with their personal tax advisors to explore potential benefits.
Interest Received
Many investors had received prior distributions as interest payments from iCap Equity before its downfall. When these figures are included in the overall recovery prospects, the net loss suffered by some could actually be less severe.
Recovery from iCap Trust
The iCap Trust, overseen by Co-Trustees and past members of the Unsecured Creditors Committee, is diligently working towards liquidating assets for distribution to investors. We maintain optimism about recovery efforts and are closely monitoring their progress, as substantial monetary values may exist within the iCap Trust that can aid in fund recovery for investors.
Our ongoing mission is to assist our clients in maneuvering through this complicated landscape, ensuring they receive the best possible recovery and benefits during these challenging times.
Message To Our Investors from Thomas Hamlin
“To our valued clients impacted by this unfortunate event, we extend our sincere apologies and a steadfast commitment to rectify this matter as best as possible. We will continue to provide unwavering support, guidance, and assistance throughout the recovery journey. Your trust is invaluable to us, and we are determined to be alongside you every step of the way.”
Contact Information
For any inquiries or further discussions on this matter, please reach out to us directly at Somerset Securities, Inc. at (800) 813-4000.
About Somerset Securities, Inc.
Founded in 1963 and acquired by Thomas Hamlin and Somerset Holdings Group, LLC in 2013, Somerset Securities, Inc., previously known as Bay Colony Securities, has focused on delivering personalized investment advice and portfolio management. With a commitment to a client-first approach, integrity, and innovative strategies, the Somerset family of companies has been serving clients since 1990.
Through this message, we reinforce our dedication to accountability and transparency, gaining the ongoing trust of our community. We are here to support you as we rebuild together.
Frequently Asked Questions
What happened with iCap Equity?
iCap Equity faced bankruptcy and was designated as a Ponzi scheme, impacting investors and the trusted advisory relationships involved.
How can investors recover their losses?
Investors may benefit from tax deductions due to the Ponzi scheme classification, and interest payments received prior to the collapse can also mitigate losses.
What is Somerset Securities' role in this situation?
Somerset Securities acted as advisors, recommending investment products based on client eligibility and potential. They are now focused on helping clients navigate recovery options.
Is there ongoing support for affected investors?
Yes, Somerset Securities is committed to providing continuous support and guidance to affected investors throughout the recovery process.
Who manages the recovery efforts?
The iCap Trust, managed by Co-Trustees along with an Advisory Committee, is actively working to recover and distribute assets to investors.
