REI 2017 Fund to Acquire Reef Oil and Gas Drilling and Income Fund Properties
The White Law Group continues to investigate the liability that brokerage firms may have for recommending Reef Oil and Gas Drilling and Income Fund to investors. The firm has handled many cases involving these high risk investments.
Reef Oil & Gas private placement offerings are sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds. Additionally, there is the general risk that comes with the energy market — a market that has seen huge losses since 2014.
Letter to Investors
According to a letter to investors dated October 6, 2017, REI Energy 2017 Acquisition and Development Fund, L.P. (REI 2017 Fund) was the top bidder at the close of the sealed bid in September that was conducted by EnergyNet.com.
The REI 2017 Fund is now in negotiations with the bank to acquire all of the properties owned by the Reef Oil and Gas Drilling and Income Fund, L.P. located in the Eagle Ford in South Texas.
The REI 2017 Fund primarily has been funded to date by the original accredited investors in the Partnership. According to the letter, the Partnership will retain a back-in-after-payout interest in the properties that may generate revenue for the Old Partners. REI 2017 Fund is accepting subscriptions from all accredited investors.
Are High Risk Oil and Gas Private Placements Suitable for you?
Broker dealers are required to perform adequate due diligence on all investment recommendations. They must 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.
Often brokers will misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
A broker or brokerage firm can be held liable if they make an unsuitable investment recommendation or fail to adequately disclose the risks. The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve such disputes.
Recover your Losses
Have you suffered investment losses in Reef Oil and Gas Drilling and Income Fund? If so, the securities attorneys at The White Law Group may be able to help you. 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.