Many investors have suffered losses after their financial advisor or broker placed them in oil and gas limited partnerships based on promises of safe and steady returns. However, private placements can be complicated, risky, and illiquid investments. In fact, the Securities and Exchange Commission (SEC) issued an investor alert for private oil and gas offerings noting that “Investing in private offerings…carries unique risks, and private oil and gas offerings have additional risks to consider.”
Many US energy companies have suspended drilling operations in light of the recent crash in crude oil prices. As such, investors are learning just how risky their investment really was.
Most investor claims against brokers or other financial professionals must be submitted to arbitration with the Financial Industry Regulatory Authority (FINRA). A panel of one or three arbitrators (depending on the size of your claim) will determine whether the investor is entitled to recovery of their losses and potentially attorney’s fees and interest.
Many investors blame themselves or are embarrassed by their investment losses. However, brokers have a duty to ensure that the products they recommend are suitable for the investor. That is why the investor entrusted the broker in the first place.
There is no guarantee that the investor can recover their oil and gas partnership losses but aggrieved investors should immediately contact a qualified securities arbitration attorney for a free case analysis. Many securities cases are handled on a contingency arrangement meaning you do not pay your attorney a fee unless you win. Please contact attorney Mark C. Santi at email@example.com with any questions.