May 20, 2018 Comments (0) Blog, Current Investigations

Ridgewood Energy Oil & Gas Fund III – Investment Losses

Ridgewood Energy Oil & Gas Fund III
(Last Updated On: June 5, 2018)

Ridgewood Energy Oil & Gas Fund III – Securities Investigation

The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended Ridgewood Energy Funds such as Ridgewood Energy Oil & Gas Fund III to investors.

Ridgewood Energy Corporation is a private upstream oil and gas investment company. According to Financier Worldwide, its third private equity fund to date is Ridgewood Energy Oil & Gas Fund III, L.P.

Fund III is also a continuation of Ridgewood Energy’s investment program which is focused on finding and developing oil in the deepwater Gulf of Mexico for $20 per barrel or less. The company filed a form D for the offering Ridgewood Energy Oil & Gas Fund III, L.P. in 2015.

The trouble with alternative investment products, like Ridgewood Energy Oil & Gas Fund III, is that they involve a high degree of risk. They 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 offerings is also the general risk that comes with the energy market. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.

The White Law Group continues to investigate potential claims involving Broker dealers who may have improperly recommended Ridgewood Energy funds to investors. Specifically, The White Law Group is investigating the following Ridgewood offerings:

Ridgewood Energy Bluewater Institutional Fund LLC,
Ridgewood Energy Bluewater Oil Fund II LLC,
Ridgewood Energy Bluewater Oil Fund IV LLC
Ridgwood Energy V Fund
Ridgewood Energy Y Fund
Ridgewood Energy U Fund
Ridgewood X Energy Fund
Ridgewood Energy Oil & Gas Fund II L.P.,
Ridgewood Private Equity Partners Energy Access Fund LLC

Investigating Potential Claims

Broker dealers that sell alternative investments 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.

However, another issue with alternative investments is that the high sales commissions and due diligence fees. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks.  They may misrepresent 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. 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 found liable for investment losses in a FINRA arbitration claim.

If you are concerned about your investment in Ridgewood Energy Oil & Gas Fund III or another Ridgewood Energy offering, 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.

 

 

 

 

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