April 17, 2016 Comments (0) Blog

Investor Alert: Black Diamond Energy Partners 2007-B

(Last Updated On: May 17, 2016)

Have you suffered investment losses in Black Diamond Energy Partners 2007-B? 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, Black Diamond Energy, Inc. is a significant natural gas developer in the coalbed methane play in the Powder River Basin of Wyoming.  The company often raises money for investments through Reg D private placement offerings like the company did for Black Diamond Energy Partners 2007-B.  These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%.

The trouble with alternative investment products, like Black Diamond Energy Partners 2007-B, 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 and bonds.  An additional risk inherent to Black Diamond Energy offerings is also the general risk that comes with the natural gas market – a market that has seen enormous losses over the last few years due to the declining cost of natural gas.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment 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 commission brokers earn for selling such products sometimes can provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments.

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 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 Black Diamond Energy Partners 2007-B or another Black Diamond private placement investment, 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.