Ridgewood Energy Fund Investment Losses
Have you suffered substantial losses in your investment with Ridgewood Energy Fund? If so, the securities fraud attorneys at The White Law group may be able to help you recover your losses through FINRA arbitration.
Ridgewood Energy is a private equity firm headquartered in Ridgewood, New Jersey. According to their website the company has over 30 years experience investing in the oil and gas industry. Through their Funds, Ridgewood invests in major oil and gas projects, with particular focus on deepwater oil assets located in the U.S. waters of the Gulf of Mexico.
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.
The company’s website also states that Ridgewood was “founded to meet specific sector objectives of institutional and high net worth investors.” Unfortunately for investors, though, some brokerage firms have sold Ridgewood Funds to unsophisticated investors.
Broker-dealers and investment advisors are required by the Financial Industry Regulatory Authority (FINRA) to demonstrate sufficient due diligence on any particular investment offering. Brokerage firms are also required to only recommend investments that are suitable for their clients. Suitability is determined by such factors as age, financial situation, liquidity needs, other ventures, risk tolerance, and investment experience.
Oil and gas partnerships are typically offered as private placements. Though returns can be exceedingly large, oil and gas partnerships are speculative ventures and investors must be able to afford the total loss of their investment. In addition, private placements like Ridgewood Energy Funds are typically illiquid, hard to resell, and often have a long holding period.
According to the SEC
According to SEC filings the Ridgewood Energy K Fund and M Fund have been terminated as of October 2012. In a letter to Ridgewood M Fund investors, Ridgewood expressed their disappointment in the performance of the fund and contributed its poor performance to dry-holes in 3 of the 5 wells drilled, among other factors. The letter as noted that the 2 wells which found gas failed to meet expectations. The K Fund appears to have encountered similar performance issues. According to form K-8, half of the 14 wells drilled in the K Fund were dry-holes. Clearly, these investments did not pan out the way investors had hoped.
This is not the first time Ridgewood Energy Fund investors have received troubling news. As mentioned in our earlier post, letters sent out to investors in Funds O, Q, S, T, V, and W announced that Ridgewood was forced to seek outside financing due to the cost of oil exploration.
Brokerage-firms and investment advisors who sell private placements intended for sophisticated investors, like Ridgewood Energy Funds, to individuals who are not suitable can be held accountable for loses suffered through FINRA arbitration.
The White Law Group is investigating the sale practices of the following Ridgewood Energy Funds:
- Ridgewood Energy I Fund
- Ridgewood Energy J Fund
- Ridgewood Energy K Fund
- Ridgewood Energy L Fund
- Ridgewood Energy M Fund
- Ridgewood Energy N Fund
- Ridgewood Energy O Fund
- Ridgewood Energy P Fund
- Ridgewood Energy Q Fund
- Ridgewood Energy R Fund
- Ridgewood Energy S Fund
- Ridgewood Energy T Fund
- Ridgewood Energy U Fund
- Ridgewood Energy V Fund
- Ridgewood Energy W Fund
- Ridgewood Energy X Fund
- Ridgewood Energy Y Fund
- Ridgewood Energy Z Fund
Recovery of Investment Losses
If you have suffered losses and would like to learn more about your legal options against the broker-dealer that sold you a Ridgewood Energy Fund investment, please contact the securities attorneys of 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 http://www.whitesecuritieslaw.com.