April 6, 2016 Comments (0) Blog, Current Investigations

Investor Alert: American Natural Energy Corp.

(Last Updated On: September 7, 2016)

Have you suffered investment losses in American Natural Energy Corp.? 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 Bloomberg, American Natural Energy Corporation acquires, develops, exploits, and produces oil and natural gas in the United States. Its principal asset includes Bayou Couba Leases covering approximately 1,320 acres of land in St. Charles Parish, Louisiana.  American Natural Energy Corporation is based in Tulsa, Oklahoma.

American Natural Energy Corporation filed for bankruptcy protection, or had an involuntary bankruptcy petition filed against it, on August 31, 2015. The US Bankruptcy Court approved the fourth amended plan of reorganization of American Natural Energy Corporation on March 29, 2016. The debtor has filed its amended plan in the Court on March 29, 2016. The plan will be financed through issuance of common stock and preferred stock.

American Natural Energy Corp. is a Reg D private placement. The trouble with private placements, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. An additional risk inherent to these offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities.

The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like American Natural Energy Corp.

Broker dealers that sell private placements are required to perform adequate due diligence on all investment recommendations to 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.

However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and 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.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of American Natural Energy Corp., 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 with offices in Chicago, Illinois and Vero Beach, Florida. The firm 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.