Madison Capital Energy Income Fund II LP– Securities Investigation
Are you concerned about your investment in Madison Capital Energy Income Fund II? 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.
Madison Capital is a private equity firm that provides energy royalty portfolios to private investors, accredited investors and institutions, according to its website.
The company filed a Form D (private placement) notice of exempt offering of securities in 2012. The filing states the type of industry group is Oil & Gas.
The Risks of Investing in Reg D Private Placements
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products like Madison Capital Energy Income Fund II LP to their clients.
Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.
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.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
If you are concerned about your investment in Madison Capital Energy Income Fund II LP or another private placement investment and would like to speak with a securities attorney about your options, please call The White Law Group at 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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.