Investigation into Penneco Investments
Have you suffered losses in an Penneco investment program? If so, The White Law Group may be able to help you recover some of your losses through a FINRA dispute resolution claim against the brokerage firm that recommended the investment.
According to their website, Penneco is an oil and gas exploration company founded in 1978 with headquarters in Delmont, PA. The company has a focus on the Appalachian Basin with more than 900 oil and gas wells in the region.
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.
Trouble with Oil and Gas Investments
The White Law Group is investigating the liability that brokerage firms have for recommending high-risk oil and gas programs. The firm has handled a number of claims involving Penneco investments. In those claims, the firm has alleged, among other things, that the Penneco investments were (1) high-risk and unsuitable for our clients given their financial situation, needs and investment objectives, (2) that the risks of the investment were not fully disclosed to them, and (3) that the brokerage firms that sold the investments failed to conduct the proper due diligence with respect to the Penneco investments (as the firms are required to do by FINRA Rules).
Oil and gas limited partnerships, like those offered by Penneco, involve a high degree of risk and should be undertake only by individuals who can risk total loss of their investment. Limited partnerships are not publicly traded and lack liquidity. In addition, they are exempt from registration with the Securities and Exchange Commission (SEC) and therefore lack regulatory oversight as compared to more traditional investment like bonds or mutual funds . Furthermore limited partnerships offer extremely high commission fees which may explain why some brokers downplay the risk when making recommendations to investors.
Specifically, The White Law Group is investigating potential claims involving the following Penneco offerings:
- Penneco Drilling Associates 2011-1
- Penneco Drilling Associates 2012-1
- Penneco Drilling Associates 2013-1
Recovery of Investment Losses
If you invested in an Penneco offering and would like to discuss your litigation options, please call 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. The firm represents investors in FINRA arbitration claims throughout the U.S. Visit our homepage to learn more about the firm.