Securities Investigation – Azabache Energy Inc.
Are you concerned about your investment in Azabache Energy Inc.? 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.
Azabache Energy Inc., an exploration stage company, engages in the exploration of oil and gas properties primarily in Argentina and Colombia.
On June 8, the U.S. Securities and Exchange Commission (Commission) announced the temporary suspension of trading in the securities of Azabache.
According to SEC filings, Azabache Energy Inc. filed a Form D to raise capital from investors in 2013. The total offering amount was $2,633,289.
Investments such as these are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The problem with private placement investments such as Azabache Energy Inc. is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Investigating Potential Claims
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements, like Azabache Energy Inc. to investors.
Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you have concerns regarding your investment in Azabache Energy Inc. and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visithttp://www.whitesecuritieslaw.com.