July 17, 2012 Comments (0) Blog, Securities Fraud

Recovery of Mewbourne Oil Investment Losses

Mewbourne Oil
(Last Updated On: October 16, 2017)

Investment Losses in Mewbourne Oil Investments

Have you suffered losses in Mewbourne Oil or Mewbourne Energy Partners?  If so, the securities attorneys of The White Law Group may be able to help you recover your losses through FINRA arbitration.

According to its Form 10-Q SEC filing, Mewbourne Energy Partners is a Tyler, Texas based oil and gas development company.  In order to raise capital for its offerings, Mewbourne Energy Partners has offered “private placements” to the public, which were then offered and sold by certain FINRA registered broker-dealers.  The private placement offering, consisting of limited and general partner interests, began May 1, 2007 as a part of the Mewbourne Energy Partners 07 Drilling Program and concluded August 13, 2007 with total investor contributions of $70,000,000 originally being sold to accredited investors, of which $65,710,000 were sold to accredited investors as general partner interests and $4,290,000 were sold to accredited investors as limited partner interests.

Many oil and gas LPs have high expense ratios, and due to the decline in the overall health of the oil and gas market, are suffering. Some are on the brink of default, or worse yet, bankruptcy.  Such an outcome is extreme, but not unforeseen. It only highlights the unsuitability of these investments for most retail investors – particularly in large concentrations.

Private placements like the one offered by Mewbourne Oil are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.  Notwithstanding the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation (commissions on private placements are often between 7-10%, 4-5 times higher than most investment products sold by financial advisors).

The White Law Group continues to investigate the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements, like Mewbourne Oil, to their clients.

Recovery of Investment Losses

To speak with a securities attorney regarding your investment in Mewbourne Oil, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit the firm’s website at http://www.whitesecuritieslaw.com.

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