February 21, 2013 Comments (0) Blog, Securities Fraud

Update on Securities Fraud Investigation Involving Bradford Drilling Associates

Bradford Drilling Associates
(Last Updated On: October 13, 2017)

Bradford Drilling Associates Investment Losses

The White Law Group continues to investigate potential FINRA arbitration claims involving Bradford Drilling Associates investments.

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.

Investors in Bradford Drilling Associates XIX, L.P. and XX, L.P. received a letter on December 1, 2012 proposing the dissolution of the Partnership.

On January 17, 2013, Royal Dutch Shell (Shell) purchased 100% of Bradford Drilling Associates XIX, L.P. assets for  $3,575,677. This ended the partnership and allowed investors to receive liquid distributions.

Unfortunately for Bradford Drilling Associates XX, L.P., it appears that the sales proceeds will not be used for distributions to investors but rather to cover other financial obligations.

An earlier letter informed investors that Shell became the operator of the wells after the acquisition of the original operator East Resource, Inc.  As a result, the partnership became concerned that the operating cost of the wells would increase and exceed the cost the wells could support.   Upon information and belief, this was the bases for the dissolution.

Bradford, an oil and natural gas drilling company since 1994, is located in Buffalo, New York.  According to filings with the Securities and Exchange Commission (SEC), Bradford Drilling Associates have offered numerous private placements to raise funds.

Risks of Private Placement Investments

Private placements are exempt from the typical registration requirements of the federal Securities Act of 1933. Brokers that sell private placements have a fiduciary duty to investors. They should only recommend private placements to accredited investors or those who meet suitability standards.  However, because of the high commissions earned, many brokers push the sale of private placements on investors who may not understand the risks.

If you suffered significant losses as a result of your investment in a Bradford Drilling Associates private placement and were misinformed about the risks, you may have a valid securities arbitration claim against the broker-dealer.

The White Law Groups is looking into the following Bradford private placements, among others:

  • Bradford Drilling Associates XIX, LP
  • Bradford Drilling Associates XV, LP
  • Bradford Drilling Associates XVI, LP
  • Bradford Drilling Associates XVII, LP

To determine whether you may be able to recover your investment losses through a FINRA arbitration claim, please contact the attorneys of The White Law group at 888-637-5510 for a free consultation.

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

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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