January 14, 2016 Comments (0) Blog

New Source Energy Partners LP Investigation

Noble Royalty Access Fund GP
(Last Updated On: February 10, 2017)

New Source Energy Partners LP Investment Losses

Have you suffered losses investing in New Source Energy Partners LP?   If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.

New Source Energy Partners LP owns and acquires land to produce oil and natural gas. The Company’s produces oil and natural gas on-shore. New Source operates out of east-central Oklahoma.  The company is based in Oklahoma City, Oklahoma.  According to Bloomberg, New Source Energy Partners LP is down over 99% over the last year.

Master Limited Partnerships (MLPs), like New Source Energy Partners LP are a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publically traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities.

Problems with Master Limited Partnerships

MLPs have increasingly been used to invest in the energy sector and are often sold to investors seeking income.  However, MLP’s are extremely complex and risky, making them only suitable for wealthy, sophisticated retail investors or institutional investors.  They are also a dream product for Wall Street because of the fees they generate, which may cause unscrupulous financial advisors looking to maximize their own commissions to recommend them improperly.

The White Law Group continues to investigate the liability that brokerage firms may have for recommending high risk energy MLPs, like New Source Energy Partners LP, to their clients.

Brokerage firms are required to perform adequate due diligence on all investments they recommend and to ensure that all recommendations are suitable for their client in light of that client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for losses in a FINRA arbitration claim.

Recovery of Investment Losses

If you suffered losses investing in New Source Energy Partners LP or another MLP and would like to discuss your litigation options, please call The White Law Group’s Chicago office at 1-888-637-5510 for a free consultation.

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

For more information on The White Law Group and its representation of investors, visit www.whitesecuritieslaw.com.