The White Law Group is investigating the sale of joint venture interests in Reef-Gumbo II, Sweet Bay, and Grand Lake JV (“Reef-Gumbo II”) by brokerage firms who may have failed to perform adequate due diligence when recommending these products to clients.
According to the preliminary prospectus for Reef 2012-2013 Drilling LP Fund, Reef-Gumbo II, is a Texas general partnership formed in 2006 to drill three wells. All three wells were exploratory wells located in Louisiana. The first two wells were drilled and abandoned as dry holes. The third well was initially unsuccessful, however, the bottom hole location was diverted, and the well is now successfully producing.
It appears that investors still have not received the full return of their initial investment capital made in Reef-Gumbo II. However, some investors may be able to recovery their losses by filing a claim with the Financial Industry Regulatory Authority (FINRA) against the brokerage firm that sold them the investment.
There is inherent risk with oil and gas partnerships like, Reef-Gumbo II, and it is the duty of the brokerage firm to adequately disclose all risks to clients. Furthermore, brokerage firms must take into consideration a client’s age, net-worth, financial situation, risk tolerances, and investment objectives to determine suitable investment recommendations.
From what is known about Reef-Gumbo II, it appears that some brokerage firms may have overlooked FINRA suitability requirements and downplayed the risks associated with the offering. Brokerage firms that fail to comply with FINRA requirements can be held liable for investment losses.
If you invested in Reef-Gumbo II and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.
The White Law Group LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca, Raton Florida.
For more information on The White Law Group, visit WhiteSecuritiesLaw.com.