You May Have Grounds For Pursuing Damages From The Broker-Dealer or Advisor That Sold You This Risky Alternative Investment
HOUSTON, Jan. 22, 2026 /PRNewswire/ — The securities law firm of Shepherd Smith Edwards and Kantas (investorlawyers.com) is actively investigating significant investor losses involving the Priority Income Fund. Through our ongoing work with affected shareholders, our firm has learned that the fund has reportedly lost roughly half of its value in recent months, creating devastating financial consequences for unsuspecting investors.
The Structural Risks of Priority Income Fund Launched in 2013 by Behringer Harvard and Prospect Capital Management, this alternative investment was designed to invest in collateralized loan obligations (CLOs) backed by high-risk corporate debt. Because the Priority Income Fund is a private investment not traded on any public exchange, it carries two critical risks:
- Total Illiquidity: Investors cannot simply sell their shares. Many find themselves “locked in” indefinitely with no access to their principal capital.
- Valuation Uncertainty: While the fund publishes a monthly Net Asset Value (NAV), this figure is merely an estimation by fund managers. There is no independent way to verify these values or determine what the shares are actually worth.
Speculative “Junk” Investments and High Fees Priority Income Fund is marketed as income-focused, yet it is highly speculative. According to the fund’s prospectus, at least 80% of its assets are invested in debt rated below investment grade—commonly referred to as “junk.” These funds also charge investors high fees and commissions while employing significant leverage, further increasing the risk of total loss.
Broker Misconduct and Your Path to Recovery This fund was only appropriate for sophisticated investors willing to take extreme risks. However, we have spoken to many retirees and retail investors who were never fully apprised of these vulnerabilities. If your broker unsuitably recommended this fund, or if there were misrepresentations, negligence, or a breach of fiduciary duty, you may have grounds for a claim.
Shepherd Smith Edwards and Kantas recently filed a seven-figure FINRA arbitration claim against United Planners’ Financial Services of America involving the unsuitable sale of the Priority Income Fund to a retired couple. Your best chance for financial recovery lies in holding the financial advisor or firm accountable through legal action.
With over 100 years of collective experience, we have helped more than 90% of our clients secure financial recovery.
Contact us today at (800) 259-9010 or online for a free consultation.
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SOURCE Shepherd Smith Edwards & Kantas LLP
