Recovery of Investment Losses in Black Elk Energy
Did you suffer losses investing in Black Elk Energy, LP? If so, The White Law Group may be able to help.
According to their website, Black Elk Energy “focuses on creating exceptional returns in oil and gas through acquisition and exploitation. Black Elk Energy has a distinctly different structure from other companies in the industry with an emphasis on North American clean burning natural gas.” The company was founded in 2007 and is headquartered in Houston, Texas.
In August, 2015 federal prosecutors filed criminal charges against Black Elk related to a 2012 rig explosion in the Gulf of Mexico. The charges stemmed from an investigation conducted by the Bureau of Safety and Environmental Enforcement, resulting in 41 citations issued in November 2013 relating to the fatal explosion. A year after the explosion, Black Elk reported it had spent millions in costs related to the incident and was still dealing with repercussions.
Consequently on August 11, 2015, an involuntary petition for liquidation under Chapter 7 was filed against Black Elk Energy Offshore Operations, LLC in the U.S. Bankruptcy Court for the District of Texas. On September 1, 2015, the involuntary petition was approved by the Court and the Chapter 7 petition was converted to Chapter 11 reorganization. The plan was later approved as Chapter 11 liquidation, according to Bloomberg.
The White Law Group is investigating the liability that brokerage firms may have for recommending Black Elk Energy LP to investors.
Risks of Alternative Investments
Due to the high degree of risk associated with oil and gas partnerships, like Black Elk Energy, they are generally more appropriate for sophisticated and institutional investors. Unfortunately, because of the high commissions these products generally pay to brokers, they are often sold to unsophisticated and retired investors.
Brokerage firms have a fiduciary duty to perform adequate due diligence to determine if an investment is appropriate for a particular client given the client’s age, net-worth, financial objectives, investment experiences, financial needs, and risk tolerance. If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
If you purchased a Black Elk Energy LP investment through a brokerage firm and would like to speak with a securities attorney regarding your ability to recover any investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.