Concerned about investment losses in Alpha Energy Partners Drilling Program 2011 B LP?
Have you suffered losses investing in Alpha Energy Partners Drilling Program 2011 B LP? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
According to their website, for more than a decade, U.S. Energy has partnered with high net worth investors and financial institutions to provide unique access for ownership in the company’s oil & gas projects. Today, the company manages over $1 billion on behalf of their partners.
U.S. Energy Development Corporation raises money for investments through Reg D private placement offerings like the company did for Alpha Energy Partners Drilling Program 2011 B LP. These Reg D private placements are 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%.
The Problem with Reg D Private Placements
The trouble with alternative investment products, like Alpha Energy Partners Drilling Program 2011 B 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 U.S. Development Corporation 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 such as the following:
Alpha Energy Partners Drilling Program 2010 A LP
Alpha Energy Partners Drilling Program 2010 B LP
Alpha Energy Partners Drilling Program 2010 C LP
Alpha Energy Partners Drilling Program 2011 A LP
Alpha Energy Partners Drilling Program 2011 B LP
Alpha Energy Partners Drilling Program 2012 A LP
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 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 misrepresentation 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 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 Alpha Energy Partners Drilling Program 2011 B LP or another U. S. Energy Development Corporation 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.