May 3, 2017 Comments (0) Blog

Blue Ridge Opportunity Fund IV Securities Fraud Investigation

Blue Ridge Opportunity Fund IV
(Last Updated On: July 6, 2017)

Investigating Potential Claims involving Blue Ridge Opportunity Fund IV

Have you suffered losses investing in Blue Ridge Opportunity Fund IV or another Blue Ridge Group investment? If so, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration suit against the brokerage firm that sold you the investment.

Blue Ridge Group, Inc. engages in oil and gas exploration. The company was founded in 1991 and is based in Bowling Green, Kentucky, according to Bloomberg. The company often raises money through Reg D private placements.

The Trouble with Reg D Private Placements

The trouble with alternative investment products, like Blue Ridge Opportunity Fund IV, 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 Blue Ridge 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.

In addition, 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 White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements such as Blue Ridge Opportunity Fund IV.

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.

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.

Free Consultation

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Blue Ridge Opportunity Fund IV LLC or another Blue Ridge 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.