Penneco Drilling Associates 2012-1 – Recovery Options
Did you lose money investing in Penneco Drilling Associates 2012-1 at the recommendation of your financial advisor? If so, The White Law Group may be able to help by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Many oil and gas LPs have high expense ratios, and due to the decline in the overall health of the oil and gas market, are suffering. Some are on the brink of default, or worse yet, bankruptcy. Such an outcome is extreme, but not unforeseen. It only highlights the unsuitability of these investments for most retail investors – particularly in large concentrations.
Penneco Drilling Associates 2012-1 is an oil and gas private placement sponsored by Penneco Oil Company, based in Delmont, Pennsylvania. The company operates hundreds of oil and gas wells in the Appalachian Basin.
The company often raises money for investments through Reg D private placement offerings like the company did for Penneco Drilling Associates 2012-1. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%.
The White Law Group is investigating the liability that brokerage firms may have for selling Penneco limited partnership interests to investors.
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment. They must perform the necessary due diligence to determine whether the investment is suitable for the investor. Unfortunately, the high commissions associated with oil and gas partnerships often provides broker-dealers with enough incentive to overlook FINRA suitability and due diligence requirements.
If you suffered investment losses in Penneco Drilling Associates, you may be able to recover some of your losses. 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, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.