January 9, 2018 Comments (0) Blog, Current Investigations

Birch Royalties LLC – Secondary Market Sale

Birch Royalties LLC
(Last Updated On: February 12, 2018)

Birch Royalties LLC – Oil and Gas Securities Investigation

Are you concerned about your investment in Birch Royalties LLC? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.

Birch Royalties was offered by an investment sponsor called Noble Royalties.  Noble Royalties offers multiple investment products to accredited investors through various broker-dealers. Noble Royalties often raises money through Regulation D Private Placements like the company did with Birch Royalties LLC.

Oil and Gas Private Placements are Risky Investments

The White Law Group is investigating the liability some broker-dealers may have for selling Noble investment products, such as Birch Royalties LLC, to unsuitable investors.

Oil and gas private placements, such as Birch Royalties LLC, are often speculative ventures. Private placements have little regulatory oversight and as such are intended only for accredited investors. They also tend to be illiquid. It can be difficult to find a buyer, when the investor is ready to sell.  Often they sell on the secondary market at a loss on their original investment.

In August 2017, Birch Royalties was sold on LP sales, a secondary market for private placements for $20,000/unit. According to the Form D filed with the SEC, the minimum investment in Birch Royalties LLC was $100,000.

Broker-dealers are required by the Financial Industry Regulatory Authority (FINRA) to sell private placements only to accredited investors that meet suitability standards.

The investors’ age, risk tolerance, net worth, and investment experience must be considered to determine suitability for each investor. Broker-dealers that overlook FINRA suitability requirements can be liable for investment losses through FINRA arbitration.

Free Consultation

Are you concerned about your investment in Birch Royalties LLC, or another Noble offering?  If so please contact The White Law Group at (888) 637-5510 for a free consultation with a securities attorney.

The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.