PORTLAND, Ore., Feb. 25, 2025 /PRNewswire/ — At Somerset Securities, Inc., we have always prided ourselves on our commitment to integrity, transparency, and the financial well-being of our clients. Today, we address the developments involving iCap Equity, a Bellevue-based investment company, whose securities we recommended to qualified investors beginning in 2017.

Acknowledging the Unfortunate Turn of Events

It is with a heavy heart that we acknowledge the bankruptcy and subsequent Ponzi Scheme designation of iCap Equity by U.S. Bankruptcy Judge Holt in the Eastern District of Washington. This outcome was not one we anticipated, and the failure of iCap represents the most challenging event in our firm’s 35-year history. We want to express our deepest regrets to the investors affected by this situation. The failure of this investment vehicle has been a source of profound disappointment and heartache for us at Somerset Securities, where client trust and financial security are paramount.

Our Role and Response

iCap was one of several offers we made to accredited investors after taking into consideration each investor’s financial situation and product suitability. We are known for our approach to diversification, ensuring that no single investment constitutes an overwhelming portion of a client’s portfolio. Despite these precautions, the unexpected collapse of iCap Equity has led to significant financial impact for those investors involved.

We have been disheartened by the reputational damage our firm has suffered, particularly from legal actions and complaints seeking to litigate against us for this product’s failure. It is crucial to clarify that we did not create this investment product, we acted in our capacity as advisors, recommending it based on the qualifications of our clients and our belief in the investment’s potential at the time. While hindsight is 20/20, we have to make recommendations in the present. 

The Path Forward for Our Clients

While the initial shock of this investment’s failure is undeniable, there are aspects of this situation that provide a measure of relief. We are committed to ensuring that our clients understand the full scope of recovery options available:

• Tax Benefits: The designation of iCap Equity as a Ponzi Scheme by the court introduces significant tax advantages for our investors. This classification allows for potential tax deductions that can substantially mitigate the financial impact of the loss. We highly recommend consulting your personal tax advisor to understand how you might benefit.
• Interest Received: Many investors had already received distributions in the form of interest payments from iCap Equity before its collapse. When these payments are factored into the overall recovery scenario, the net loss for some investors could be less severe.
• Recovery from iCap Trust: The iCap Trust, managed by Co-Trustees Lance Miller and Seth R. Freeman with an Advisory Committee comprising Attorney Jay Kornfeld, Lillian Tan, and Tom Temple, former members of the Unsecured Creditors Committee, are actively working towards asset liquidation and distribution to investors. We are optimistic about the recovery efforts and are closely monitoring their progress. It is anticipated that once the dust settles, there will be monetary values within the iCap Trust that could be meaningful, which could further contribute to the recovery of funds for investors.

We have been and continue to actively assist our clients in navigating this complex landscape to ensure our clients receive the maximum possible recovery and benefits.

Message To Our Investors from Thomas Hamlin

“To our valued clients who were affected by this unfortunate event, we extend our sincerest apologies and our commitment to make this right as best we can under the circumstances. We will continue to provide support, guidance, and assistance to navigate through this recovery process. We want you to know that your trust in us is something we do not take lightly, and we are here for you every step of the way.”

Contact Information

For further inquiries or to discuss this matter, please feel free to contact us at:

Somerset Securities, Inc.

(800) 813-4000

About Somerset Securities, Inc.

Somerset Securities, Inc., previously Bay Colony Securities, was founded in 1963 and purchased by Thomas Hamlin and his firm Somerset Holdings Group, LLC in 2013. Thomas Hamlin and the Somerset family of companies of which he founded, have been providing personalized investment advice and portfolio management services, emphasizing a client-first approach, integrity, and innovative investment strategies since 1990.

This press release reflects our commitment to accountability, transparency, and the continued trust of our community in Portland, Oregon and all of the 50 states of this great Nation. We are here to serve, support, and rebuild together.

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SOURCE Somerset Securities, Inc.