Oil and Energy Investment Fraud Attorney | Erez Law

oil and gas investments Over the past few years, vegetable oil prices have significantly declined. A supply gorge in 2014 and 2015 led to some of the lowest prices the market has seen in late years. In bend, securities values besides dropped. The volatile energy sector experienced significant tumult, and many energy companies were negatively impacted when ball-shaped unrefined vegetable oil prices fell below $ 40 per barrel at the end of 2015. This was the lowest degree since early 2009, as provision was in excess of global necessitate. Oil and gasoline companies experienced a spike in bankruptcies, which have left many investors reeling. many fiscal advisers recommended high giving up investments in the anoint and flatulence industry, but they may have failed to amply inform their clients of the built-in risks. many brokerage house firms and fiscal advisors recommended and represented oil and gas investments as high timbre income producing investments often for aged and retirees looking for income. besides, many fiscal advisors over concentrated their clients in these petroleum and gas sector investments, which include high-yield debris bonds, stocks, victor limited partnerships ( MLPs ), and integrated products. unfortunately, in these cases, the node who has been defrauded may need to hire an investment imposter lawyer to seek justice. Customers across the nation were sold these bad energy sector investments by brokerage house firms, including :

  • Avondale
  • Barclays Capital
  • BB&T Capital Markets
  • Centaurus
  • Credit Suisse
  • Deutsche Bank
  • Edward Jones & Co.
  • FBR Capital
  • Hilliard Lyons
  • Jeffries
  • JP Morgan
  • Merrill Lynch
  • Morgan Stanley
  • Needham
  • Oppenheimer
  • Raymond James
  • RBC Capital Markets
  • Robert W. Baird
  • Stifel
  • UBS Financial Services
  • Vector Global
  • Wells Fargo

Recovering Losses Through FINRA Arbitrations

Investors seeking recourse for losses from investments in the volatile energy sector are required to file their disputes in FINRA arbitration. Erez Law has been retained by investors to file FINRA arbitration claims against brokerage house firms to recover their losses. Our firm has been very successful in making recoveries for our clients that occupy throughout the United States.

A broker must have fair grounds for each recommendation made to investors considering such factors as the customer ’ s other securities holdings, fiscal situation, and risk permissiveness. In addition, before a firm offers a security to its customers, the firm must conduct ascribable diligence, investigating the facts surrounding the security, to confirm that it is suitable for any customer of the firm. The suitability of an investing for a especial individual is at the center of the investment process and one of the key duties owed by a firm and its agent to the customer. A firm may be held liable for its failure to recommend desirable investments to its customers. Pursuant to FINRA Rules, member firms are responsible for supervising a broker ’ sulfur activities during the time the broke is registered with the firm. therefore, brokerage house firms across the nation may be liable for investment or early losses suffered by their broke ’ randomness customers. At Erez Law, many of our clients come to us because of our specialization in helping individuals who suffered losses in unsuitable and deceitful petroleum and boast investments. We use considerable legal resources to help investors who trusted foolhardy and unethical fiscal advisors. We have filed FINRA arbitration cases against or are investigating brokerage firms, including Morgan Stanley, RBC Securities, Raymond James, Oppenheimer, UBS, Vector Global, Centaurus, Merrill Lynch, Wells Fargo and others, accountable for dishonest investment advisory practices, inapplicable recommendations, misrepresentation, and over-concentration in connection with securities tied to the explosive energy sector. By way of example, in one casing against RBC Capital Markets, Erez Law represents two investors who lost over $ 875,000 of irreplaceable savings including retirement savings with fiscal adviser Paul Blum who allegedly recommended a heedless and unsuitable concentration in inquisitive energy sector bonds. Blum ’ s former customers allege that he recommended the customer induct more than 70 % of his irreplaceable retirement savings in fair a handful of highly correlated and high gear risk bonds, all of which were labeled as “ junk ” bonds at that time. Blum is presently not registered with any fast and has 22 disclosures, according to his CRD report, most having to do with inapplicable recommendations of department of energy sector bodied bond investments. Lisa J. Lowi, another fiscal adviser with RBC Capital Markets, besides recommended that her clients invest in the hazardous anoint and gas sector. Lowi has more than 30 pending customer complaints regarding a heedless and unsuitable concentration in bad energy sector bonds that were labeled as “ trash ” bonds at that meter. Erez Law is presently investigating the follow fiscal advisors who have allegedly sold unsuitable energy related investments and/or made deceitful representations in joining with recommending energy associate bonds, notes, MLPs, and integrated products :

  • Lisa J. Lowi, RBC Capital Markets
  • Paul Blum, RBC Capital Markets
  • Daniel Fain, Wells Fargo
  • John Bradford Leonard, Wells Fargo
  • Kristopher Lee McKoin, Edward Jones & Co.
  • Gibran Jose Abdala Hadad, VectorGlobal WMG
  • Margaret Mary Lech-Loubet, UBS Financial Services
  • Edward Louis Barger, Morgan Stanley
  • Andrew Yocum, Morgan Stanley
  • Charles Correal, Morgan Stanley
  • Mark Gassoso, National Securities Corporation
  • Joseph Patrick McGinley, Morgan Stanley
  • Gary Lee Richards, J.J.B. Hilliard, W.L. Lyons, LLC
  • Jeffrey Randolph Wilson, Wells Fargo
  • Abraham Heimann, Oppenheimer & Co., Inc. and Cetera Advisors, LLC
  • Irwin Gerald Maisner, RBC Capital Markets, LLC
  • Steven Roland Knuttila, Financial Services, Inc.
  • Ralph E. DeRose, Wunderlich Securities, Inc.
  • Douglas Ray Hardwick, Texas Securities, Inc.
  • Scott Vincent Kaup, VSR Financial Services

For investors seeking low or moderate risk investments, concentrating an investment portfolio in eminent gamble energy sector bonds is grossly unsuitable and foolhardy. This strategy can expose investors to companies that were vulnerable to the lapp adverse market conditions. When a prospective customer calls us regarding oil and natural gas investment losses, our team conducts a exhaustive probe. A fiscal adviser needs accept before investing in high gamble or aggressive securities. Any investor with a clear history or intent of desiring low hazard or moderate risk investments may be able to take military action against a fiscal adviser who recommended high risk investments and junk bonds of companies in the energy sector. Some of the most common types of adviser misbehave we uncover during the initial phases of our investigation admit :

  • Unsuitable investment recommendations: Before any advisor recommends investing in a stock, bond, note, or fund, he or she must meet the requirements of the rule for suitability. Every investment must match the investor’s profile for investing and take age, risk tolerance, tax status, goal timeframe, and the need for liquidity into consideration. When advisors recommend a credit poor “junk oil bond” or other high risk oil and gas security or concentrate their clients’ assets in bad energy investments, they may violate suitability standards
  • Fraudulent misrepresentations and omissions: Investment advisors must disclose all material risks related to an investment recommendation and cannot mislead an investor about such risks. By either misrepresenting the supposed safety of an investment or by failing to disclose the risks of a particular investment, a stockbroker may have engaged in fraud. Many advisors simply failed to disclose to their clients that many oil and gas investments such as junk bonds, MLPs, and private placements may involve a high degree of risk. If so, the financial advisor may have engaged in actionable fraud upon which a recovery may be based.

If an adviser concentrated your investments in a high risk anoint and gas investment program without understanding the risks associated with your investment, violated FINRA Rule 2111 ( suitability ), or engaged in an act of fraud, consider filing an arbitration claim with FINRA to pursue damages. Our team of fiscal securities attorneys have experience with FINRA arbitration, and we know how to hold brokerages and advisers liable for their indiscretions .

Energy Sector Suffers Massive Bankruptcies

The price of crude oil has always been difficult to predict and volatile to market fluctuations. The class 2012 was a great one for United States oil companies, which were thriving in a market that was reaping the highest unrefined petroleum prices on record, hovering at around $ 120 per barrel. between 2011 and 2015, U.S. oil and gasoline companies accrued an extra $ 150 billion in debt as they pressed for emergence to take advantage of high anoint prices. Following that high, worldwide demand for crude oil weakened and anoint prices in the industry dipped in 2014 and 2015, following a issue glut that lowered the cost of crude anoint to below $ 40 per barrel at the end of 2015. This in turn caused the rate of many securities to besides drop, and some companies were left with no other choice but to declare bankruptcy as they could not withstand the low oil prices. According to the latest statistics from HaynesBoone, 114 anoint and flatulence producers in the United States and Canada filed for bankruptcy since 2015, accounting for approximately $ 74.2 billion in accumulative and plug debt. In 2016 alone, 70 producers filed for bankruptcy, representing $ 56.8 billion in accumulative secured and unbarred debt. Of the exploration and production ( E & P ) filings in 2015 and 2016, 51 were in Texas, 17 in Delaware, 6 in Colorado, 5 in New York, 4 in Louisiana, and the remainder were scattered across the United States. additionally, there were 18 bankruptcy filings in Canada during this period. The largest bankruptcy filings of more than one billion dollars in 2015 and 2016 include :

  1. Sandridge Energy, Inc. ($8.26 billion)
  2. Linn Energy, LLC ($6.06 billion)
  3. Breitburn Operating Lp ($5.8 billion)
  4. Pacific Exploration & Production Corp. ($5.32 billion)
  5. Samson Resources Corporation ($4.33 billion)
  6. Ultra Petroleum Corp. ($3.79 billion)
  7. Enquest Plc ($3.23 billion)
  8. Halcón Resources Corporation ($3.22 billion)
  9. Sabine Oil & Gas ($2.86 billion)
  10. Energy Xxi Ltd ($2.75 billion)
  11. Midstates Petroleum Company, Inc. ($2.13 billion)
  12. Quicksilver Resources ($2.07 billion)
  1. Chaparral Energy, Inc. ($1.84 billion)
  2. Berry Petroleum Company, LLC ($1.77 billion)
  3. Stone Energy Corporation ($1.44 billion)
  4. Atlas Resource Partners, L.p. ($1.36 billion)
  5. Venoco, Inc. ($1.28 billion)
  6. Swift Energy Company ($1.23 billion)
  7. Penn Virginia Corporation ($1.25 billion)
  8. Energy & Exploration Partners, Inc. ($1.19 billion)
  9. Magnum Hunter Resources Corporation ($1.1 billion)
  10. Milagro Oil & Gas, Inc. ($1.07 billion)

And according to the latest estimates from Bernstein Research, we will see more than $ 400 billion in high-yield energy debt in the following two years, which indicates that there are many more bankruptcies so far to come. unfortunately, many fiscal advisors recommended bonds, notes, MLPs and breed issued by these and early energy companies that have filed for bankruptcy. At Erez Law, our speculate is to protect investors from unfair losses as the leave of unscrupulous practices of fiscal advisors employed by brokerage firms including RBC Securities, Morgan Stanley, Merrill Lynch, Raymond James, UBS and many other brokerage house firms across the nation. We have the resources and the experience needed to pursue investment firms on our clients ’ behalves .

Erez Law Represents Investors in Oil and Gas Junk Bonds

A debris bond is a high concede and high gamble security that is rated “ inquisitive ” by a a major rat representation such as Standard & Poors, Moody ’ s or Fitch. If a evaluation agency believes that an investor ’ s prospects of receiving all scheduled sake payments and refund of star at maturity is uncertain, they will pace the bond below investment degree or what is normally referred to as “ junk. ” Junk bonds have a notional nature and a higher default risk and yield in relative to investment grade bonds with a higher credit ranking. Anyone unprepared to take on the high gamble nature of debris bonds can promptly experience thousands or millions of dollars in unrecoverable losses. many investors lost money on debris energy bonds issued by companies such as :

  • Alpha Natural Resources
  • Swift Energy Co.
  • Arch Coal Inc.
  • Linn Energy
  • SandRidge Energy
  • Basic Energy Services
  • Odebrecht Oil and Gas
  • Arch Coal Inc.

These companies and many others have resorted to bankruptcy protection, defaulting on the bonds, and causing investors to lose the huge majority of their investments .

Linn Energy

Linn Energy, LLC was an vegetable oil and natural gasoline company headquartered in Houston, Texas. When ball-shaped unrefined vegetable oil prices dropped, Linn Energy accrued significant debt. According to a instruction on their web site, Linn Energy, LLC filed a voluntary prayer for restructuring under Chapter 11 of the Bankruptcy Code in May 2016 to alleviate itself of $ 5 billion in debt. In February 2017, LINN Energy, Inc. was formed as the reorganized successor to Linn Energy, LLC .

SandRidge Energy

SandRidge Energy is an anoint and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma. Due to high debt and low commodity prices, the ship’s company amassed more debt than they would sustain. In May 2016, the company filed for bankruptcy, and in October 2016 they emerged from bankruptcy, eliminating $ 3.7 billion in debt from its reorganization and opening up $ 500 million in liquidity. Erez Law represents investors for claims against brokerage house firms across the United States for losses due to investments in energy debris bonds and notes. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation.

Erez Law Represents Investors with Losses in MLPs

Master limited partnerships ( MLP ) are limited partnerships that are publicly traded and combine the tax benefits of a limit partnership with the liquid of publicly traded securities. MLPs are offered in two classes : limited partners and cosmopolitan partners. limited partners are comprised of investors who purchase units in the MLP to provide the capital for the operation and pick up income distributions from the MLP ’ sulfur cash stream. On the other hand, general partners manage the daily operation of the MLP and receive recompense based on the MLP ’ s performance. many fiscal advisors recommended MLPs to elderly and retired investors seeking income during their retirement years and often represented these investments as attachment alternatives. They were not. unfortunately, many investors have alone learned the true risks associated with MLPs and MLP funds after they sustained massive losses. many investors lost money with MLPs and MLP funds, such as :

  • Sandridge Energy
  • Goldman Sachs MLP Energy Return Fund
  • Center Coast MLP & Infrastructure Fund
  • Kayne Anderson MLP
  • Clearbridge American Energy MLP
  • Seadrill Ltd.
  • OPI Steelpath MLP Income C
  • Cobalt International Energy
  • Cushing MLP Total Return Fund
  • Center Coast MLP Focus A
  • CVR Refining
  • Breitburn Energy Partners
  • Linn Energy
  • Atlas Resource Partners
  • Vanguard Natural Resources
  • Energy XXI
  • Penn West Petroleum

Breitburn Energy Partners, Linn Energy, Atlas Resources, Energy XXl, and Vanguard Natural Resources have since filed for chapter 11 of the U.S. Bankruptcy Code .

Breitburn Energy Partners

Breitburn Energy Partners is an independent oil and boast overcome limited partnership focused on the exploitation and production of vegetable oil and gas properties throughout the United States. The refuse in commodity prices beginning in 2014 placed try on the industry as a whole, and the company ’ second debt burden became unsustainable. Breitburn has since filed for chapter 11 of the U.S. Bankruptcy Code to restructure its balance sheet in May 2016 and eliminated $ 5.8 billion in debt, according to a affirmation on the caller ’ sulfur web site Investors have lost money in MLPs and have besides been stuck with big tax bills in the MLPs due to taxes associates with MLP structure. MLPs are a means for advanced investors to own a business without double tax that typically comes with corporations, and taxes paid are typically less than if the investor had shares of that same ship’s company ’ sulfur stocks. With MLPs, up to 90 % of the capital distribution, including write-offs and depreciation of equipment, makes most of the out-of-pocket tax deferred. typically, most investors won ’ t pay up taxes on MLPs until withdrawal, if at all. When it came to some petroleum and gas MLPs, they were forced to restructure debts, which then forced investors to pay income taxes on their plowshare of the debt that was forgiven by creditors. indeed many investors lost on their investment in MLPs and were left with significant tax liabilities. Erez Law represents investors for claims against brokerage firms across the United States for losses due to investments in MLPs and MLP funds. If you have experienced investment losses, please call us at 888-840-1571 or complete our liaison mannequin for a spare consultation .

Erez Law Represents Investors in Energy Linked Structured Products and Private Placements

Structured notes or products are complex securities derived from or based on a unmarried security or index, basket of securities or indices, a debt issue, a commodity and/or a alien currency. Most structure products pay an interest or coupon rate based on certain specify parameters. Structured products typically consist of a note and a derivative, most much an choice. While the bill pays pastime, the derivative instrument defines the requital at adulthood. Despite the fact that structured products most frequently involve options, they are typically marketed as debt securities. structure products can offer a form of star protection and frequently cap the top in the fundamental investment. additionally, structure products do not trade on an exchange and are by and large not liquid investments. many brokerage firms issued structure products linked to companies in the energy sector. For case, UBS sold reverse convertible notes linked to the energy sector. UBS recently settled a claim with the Securities and Exchange Commission ( SEC ) related to its sale of integrated notes such as UBS Trigger Yield Optimization Notes. In the colonization with the SEC, “ UBS has agreed to pay more than $ 15 million to settle charges that it failed to adequately educate and train its sales military unit about critical aspects of certain complex fiscal products it sold to retail investors, ” according to the SEC. “ The SEC ’ s order finds that UBS failed to develop and implement policies and procedures sanely designed to educate and train UBS registered representatives in connection with the sale of reverse convertible notes ( RCNs ) so that they could form a fair footing to make suitable recommendations. ” The report explained that without adequate education, registered representatives made unsuitable recommendations in the sale of RCNs to retail customers despite their investing profiles or goals. In fact, UBS sold approximately $ 548 million in RCNs to more than 8,700 relatively inexperienced retail customers. Structured products, such as the UBS Yield Optimization Notes investments, are much bad and unsuitable for many types of investors, particularly aged customers who are looking to preserve their principal and live off of interest made on those investments. many UBS customers lost money with structured notes, including :

  • UBS Trigger PAOS Cree
  • USB Trigger PAOS US Steel
  • UBS PAOS Trigger Peabody Energy

fiscal advisors across the country besides recommended anoint and gas private placements, which are typically bad and illiquid investments that do not have to be registered with the Securities and Exchange Commission ( SEC ) and have minimal regulative supervision. Private placement investments are not publicly traded and are typically sold to individuals or a group of people. These securities are typically purchased by wealthier and more experience investors. individual placements such as noble Royalty Access Fund are hazardous investments for many investors. noble Royalty Access Fund specializes in the acquisition, fund and management of coal, oil and natural gas royalties and is one of the largest independent buyers of oil and flatulence royalties in the U.S. Oil and boast private placements, such as the lord products, are known to be bad ventures that are good suited for experienced and accredited investors. Erez Law represents investors for claims against brokerage firms across the United States for losses due to investments in integrated products and individual placements tied to the energy sector. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a release consultation .

Erez Law Represents Investors in Energy Linked Stocks and Private Placements

investment advisors besides recommended petroleum and natural gas caller stocks to investors. Stocks tied to the vegetable oil and accelerator sectors are close tied to the price of crude anoint and know significant losses due to falling anoint prices. Due to the gamey risk nature of stocks, they are subject to marketplace volatility and are not suitable for bourgeois investors who are looking to maintain principal. many investors lost money with stocks tied to the energy sector, including ForceField Energy and BP Prudhoe Bay Royalty Trust. ForceField Energy, once named Sunsi Energies Inc., offers products and solutions that focus on sustainable energy solutions and improved energy efficiency including LED and other commercial ignition products. In April 2015, the party ’ s early president was charged by U.S. officials with scheming to boost the ship’s company ’ s partake price by making secret payments through a Belize-based firm. With the help oneself of the stock price boosting schema, the livestock price jumped from $ 4.55 in January 2014 to $ 7.82 in April 2015. In May 2015, the ship’s company delisted its stock from the Nasdaq Capital Market as a leave of uncertainties related to future earnings and operations reported to the SEC. As of April 2017, the stock is still presently unlisted. BP Prudhoe has a dividend output of over 12 % as of April 2017, however according to late reports, royalty payments will continue until 2020 and then will cease in following years, or preferably. Due to low oil prices, BP Prudhoe and other oil producers have cut back investments because it ’ s not economical at current oil prices. Investing in stocks such as BP Prudhoe is betting on higher petroleum prices in the future, which is not certain at this time. BP Prudhoe has seen some large variability in monetary value. It has seen a 5-year high of $ 124.86 in April 2012 and a decline in price to where in April 2017 it trades at good over $ 20. Erez Law represents investors for claims against brokerage firms across the United States for losses ascribable to investments in these stocks and many others tied to the energy sector. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free reference .

Red Flags of Oil and Gas Investment Fraud

All investors can protect their rights to suitable investments under FINRA rules. Keep these red flags in take care and contact an lawyer, FINRA congressman, or SEC representative if you suspect fraud :

  • Marketing ploys. Investment scams often begin with strong sales pitches. Professionals skilled in the art of negotiation use phone calls and digital communications to sell the opportunity. They may make unproven claims focusing on the oil and energy opportunity’s low risk nature, previous track record of success, or the time sensitive nature of the investment. Marketing ploys are the easiest red flags to spot and serve as clear signs the investment deserves a closer look.
  • Unreasonable requests for legal waivers. Some advisors may try to sidestep legal requirements with waivers that might strip the advisor of legal liability for the investment outcome. Most legitimate advisors must hold a valid registration with the SEC and a membership with FINRA. You can check the status of both easily and quickly online for peace of mind.
  • Inability to answer questions. Ask your advisor as many questions as you need to feel comfortable with the oil and energy investment. Discuss the well history, reserves estimations, experience with energy stocks and bonds, and third party reports from engineers and other specialists who would reasonably work onsite. If the advisor cannot answer or is unwilling to find the answers and quickly provide sufficient information, take a closer look at the investment arrangement.

While these crimson flags can alert you to a bad investment ahead, many cases of investment imposter begin legally and slowly become deceitful over time. If you always feel uncertain about your investment returns or partnership transparency, examine your portfolio and possible legal remedies .

Contact Us for a Free Consultation

Erez Law has the resources, have and skill to hold even the largest brokerage firms accountable. We routinely handle matters originating in across the United States including Puerto Rico, american samoa well in Latin America including in countries including Mexico, Argentina, Colombia, and Venezuela.

If you have experienced investment losses or fiscal irregularities as a consequence of unsuitable or deceitful investment practices, we are here to help. We are not afraid of taking on corrupt firms, and we can and will combat some of the largest brokerage firms throughout the United States. Count on our experience to successfully take you through the FINRA arbitration process. Please call us at 888-840-1571 for a rid reference or complete our liaison form to investigate your recourse for losses in the volatile energy sector. Erez Law is a nationally recognized jurisprudence tauten representing individuals, trusts, corporations and institutions in claims against brokerage house firms, banks and policy companies on a eventuality tip footing. Read More:

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