ComplaintsforIntrepid Private Capital Group, LLC

• Initial Complaint

  06/16/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  My wife and I own a private equity company. We’re known as what’s called independent sponsors meaning we find companies and raise capital to buy them, then hold onto them. We were working on a $24M deal in August 2021 and employed the help of what we thought was a broker dealer company called Intrepid Private Capital Group LLC to help us raise the capital for it. They had a $17,000 REFUNDABLE fee that we felt comfortable paying because their contract stated that the fee was refundable if they didn’t introduce us to “an interested and capable funding source”. They introduced us to a company called ********** ******* ***** *** who charged a $15,000 underwriting fee which we were comfortable paying because we thought they were the funding source. We found out they weren’t the actual source of capital, they had to introduce us to an investor for an additional underwriting fee. So, they strung us along saying they were "pitching investors" until around February 2022, when we asked for our money back they said they didn’t owe us any money back because they did their job, which they didn’t because ********** was “interested” but they weren’t a legitimate funding source, and clearly not capable neither. We never had in investor introduction from the "interested" investor. After further diligence on the companies, neither company is licensed with the SEC according to a public record search. I believe a company has to be when raising capital for a fee unless they file a special exemption, which they don’t have to our knowledge. They essentially stole from us, and I assume they broke SEC regulation. We are still trying to recover the funds that were taken because the contracts we signed with both companies were not fulfilled. John C********, CEO of Intrepid, also lied about being the owner of Intrepid until we asked for the refund. ****** **************, Partner at ********** ******* ***** *** waited until the contract lapsed to tell us we were not receiving a refund.

  Business response

  06/27/2022

  Response to BBB Complaint ID ********; *********************
  
  Intrepid Private Capital Group (Intrepid) respectfully requests that the BBB not post this completely unwarranted complaint, nor its response, to Intrepid's BBB account. 
  
  Complainant signed two contractual agreements with Intrepid (1) Mutual Non-Circumvention, Non-Disclosure Agreement (NDA) on August 30, 2021 and (2) Financial Services Agreement (FSA), dated September 7th, 2021.
  
  In response to the Complainants missives regarding his dissatisfaction with Intrepid services and patently false allegations concerning among other things, the bona fides of the Source of funding to which Intrepid provided introduction is in full and complete compliance with the FSA scope of service requirements.
  
  Intrepid’s signed and initialed legal document (FSA) states “In the unlikely event that Intrepid fails to bring an interested and capable Source of funding forward to Client, Intrepid agrees to refund to Client any Consideration Fee paid…”.  Intrepid took Complainant to a fully-capable Source of funding in September 2021 and the interested Source of funding has been working with the Complainant since that date.  The Complainant received a Letter of Interest in December 2021 from the funding Source.
  
  The NDA clearly states “Intrepid performs neither official underwriting nor due diligence regarding Client representations or business planning documents, therefore, is in no position to guarantee any funding outcome.  It is understood that underwriting and due diligence and the time expended therefore is solely the province of the funding Source(s). These risk assessment services are performed at the Client’s expense. ”Intrepid has worked with Complainant for almost one year and we have explained to Complainant that the Consideration Fee is non-refundable, as we did what we said we would do (per the legal agreements between us) and the Consideration Fee has been expended to cover almost a year’s worth of Intrepid costs in the performance of these contractual obligations.
  
  Regarding Complainant’s accusation of SEC Regulations, Intrepid has the following Disclaimer on all its correspondence:
  DISCLAIMER:  Sender is not a United States Securities Dealer or Broker or U.S. Investment Adviser and complies with U.S. IRS Circular 230 disclosure.  Intrepid is engaged in business plan viability assessment, to determine completeness and suitability for Project implementation.  All due diligence remains the responsibility of the Principal.  This correspondence and any attachments are never to be considered a solicitation for any purpose in any form.
  
  This is a simple case of an inexperienced businessperson who heard what he wanted to hear and did not comprehend the documents he signed, clearly stating that there are NO Guarantees re: funding nor timelines.

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