November 7, 2015 Comments (0) Blog, Current Investigations

Investor Alert: Sable Operating Company

Sable Natural Resources
(Last Updated On: October 11, 2017)

Investment Losses in Sable Natural Resources

Have you suffered investment losses investing in Sable Natural Resources or Sable Operating Company? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to their website, Sable Natural Resources (formerly NYTEX Energy Holdings, Inc.) is an independent oil and gas company. The business is focused on the acquisition and exploitation of unconventional liquids rich gas and oil reserves in the Fort Worth Basin. Sable Operating Company, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas in 2015.

Sable Natural Resources Corporation filed a plan of reorganization and disclosure statement in the US Bankruptcy Court on August 31, 2017.

Update

According to the SEC, Sable Natural Resources has allegedly been delinquent in its required periodic filings with the commission. The SEC has scheduled an administrative hearing to determine whether the allegations of the Division contained in the Order, which the Division of Enforcement alleges constitute failures to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 there under, are true.

Risks of Reg D Private Placements

Sable Natural Resources often raised capital through Reg D private placements. The trouble with private placements, is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. The declining cost of oil and other energy commodities increases these risks.

The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like Sable Operating Company and NYTEX Energy Holdings.

Broker dealers that sell private placements are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

Reg D private placements typically have high sales commissions and due diligence fees the brokers earn for selling such products. Sometimes brokers may push the product to unsuspecting investors who do not fully understand the risks of these types of investments. Often brokers focus on the income potential and tax benefits while downplaying the risks.

Fortunately, The Financial Industry Regulatory Authority does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

Free Consultation

You may be able to recover investment losses in Sable Natural Resources. Please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm. The firm has offices in Chicago, Illinois and Vero Beach, Florida. The White Law Group represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.