Have you suffered losses due to your investment in Provident Royalties LLC and/or their affiliates like Provident Resources, Provident Energy, and Shale Royalties? If you did, the attorneys of The White Law Group may be able to help you recover your investment losses through FINRA arbitration.
Provident Royalties LLC and its related entities are alleged to have perpetrated a $485 million fraudulent offering and Ponzi scheme.
A July 2009 release from the SEC announced the first move by the SEC to take serious action against Provident Royalties. The release stated the full list of defendants in the case; the case number 3-09CV1238-L is the Securities and Exchange Commission v. Provident Royalties, LLC, Provident Asset Management, LLC, Provident Energy 1, LP, Provident Resources 1, LP, Provident Energy 2, LP, Provident Energy 3, LP, Shale Royalties II, Inc., Shale Royalties 3, LLC, Shale Royalties 4, Inc., Shale Royalties 5, Inc., Shale Royalties 6, Inc., Shale Royalties 7, Inc., Shale Royalties 8, Inc., Shale Royalties 9, Inc., Shale Royalties 10, Inc., Shale Royalties 12, Inc., Shale Royalties 14, Inc., Shale Royalties 15, Inc., Shale Royalties 16, Inc., Shale Royalties 17, Inc., Shale Royalties 18, Inc., Shale Royalties 19, Inc., Shale Royalties 20, Inc., Paul R. Melbye, Brendan W. Coughlin, and Henry D. Harrison, defendants and Shale Royalties 21, Inc., Shale Royalties 22, Inc., Provident Operating Company, LLC, Somerset Lease Holdings, Inc., and Somerset Development, Inc.
In that release the SEC stated that they “obtained a temporary restraining order and emergency asset freeze” related to the “scheme orchestrated by Paul R. Melbye, Brendan W. Coughlin and Henry D. Harrison through a company they owned and controlled, Provident Royalties LLC. In addition to the asset freeze, the court has appointed a receiver to preserve and marshal assets for the benefit of investors.”
The SEC “alleges that from at least June 2006 through January 2009, Provident made a series of fraudulent offerings of preferred stock and limited partnership interests for the purpose of generating promised returns through investments in oil and gas assets.” Further, “the sales were made through 21 affiliated entities to more than 7,700 investors throughout the United States.” Court documents indicate that the SEC believes that “Provident falsely promised yearly returns of up to 18 percent and misrepresented to investors that 85 percent of the funds raised through the offerings would be used to purchase interests in oil and gas real estate, leases, mineral rights, and interests, exploration and development. The Commission alleges that, in fact, less than 50 percent of investor funds were used for their stated purpose, and the proceeds from later offerings were used to pay expenses related to earlier offerings and returns to investors in those offerings.”
As indicated, many registered broker-dealers across the country sold these fraudulent investments to their clients. According to the investmentnews.com, 52 broker-dealers in all sold Provident Royalties related investments.
Many of the firms that sold Provident investment have folded as a result of the litigation deluge. In fact, the investmentnews.com is reporting that 20 of those broker-dealers have gone out of business or are in the process of going out of business largely due to awards to clients related to the Provident investments.
Although some of the firms that sold these investments have gone out of business, many of these firms remain. If you have lost money in a Provident Royalties related investment and you invested with a broker-dealer that is still in business you may have an excellent opportunity to recover your losses.
If you have suffered losses in in Provident Royalties LLC and/or their affiliates like Provident Resources, Provident Energy, and Shale Royalties and would like to speak to a FINRA arbitration attorney that may be able to help guide you through the recovery process please call out Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.