May 2, 2016 Comments (0) Blog

Investor Alert: Bradford Drilling Associates XXVII LP

Bradford Drilling Associates XXVII LP
(Last Updated On: October 13, 2017)

Bradford Drilling Associates XXVII LP Investment Losses

Have you suffered investment losses in Bradford Drilling Associates XXVII LP? 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, the Bradford group of companies was formed in 1994 to focus on creating investment opportunities related to the oil and natural gas industry. Over the ensuing 21 years, Bradford Exploration, Inc., Bradford Energy, LLC and Bradford Energy Capital, LLC claims to have been the managing general partner of 42 limited partnerships which have invested more than $270 million in approximately 2,000 oil and natural gas wells, several natural gas processing plants, natural gas pipelines, extensive mineral leases and royalty interests.

The Bradford Group often raises money for investments through Reg D private placement offerings like the company did for Bradford Drilling Associates XXVII LP.  These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

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 Alternative Investments

The trouble with alternative investment products, like Bradford Drilling Associates XXVII LP, 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 Bradford Drilling  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 Bradford Drilling Associates XXVII LP.

Broker dealers that sell alternative investments 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.

Recovery Options

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Bradford Drilling Associates XXVII LP or another Bradford Reg D 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. 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.