Investor Alert: NGAS Partners Investigation
Are you concerned about your investment losses in a limited partnership opportunity with NGAS Partners? If so, The White Law Group may be able to help.
NGAS was founded in 2004 and is based in Lexington, Kentucky. NGAS is a natural resources company focused on natural gas development drilling and reserve growth in the Appalachian Basin. NGAS offered investment opportunities in natural resource limited partnerships.
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.
According to SEC files, Magnum Hunters acquired NGAS in 2011. Magnum Hunters is an exploration and production company that focuses on unconventional oil and gas basins throughout the United States.
Oil & Gas Partnerships are Speculative
The White Law Group is investigating broker-dealers who may have sold NGAS to investors without performing adequate due diligence. Oil and gas limited partnerships, like NGAS Partners, are speculative investments and are not appropriate for most investors, especially retirees or individuals nearing retirement. Broker-dealers are required by the Financial Industry Regulatory Authority (FINRA) to take into consideration a client’s age, net worth and risk tolerance when making investment recommendations. In addition, investment recommendations must be in line with the client’s financial needs and investment experience.
Unfortunately for investors, the high commissions associated with oil and gas partnerships often provides broker-dealers with enough incentive to overlook FINRA suitability and due diligence requirements. In turn, the unscrupulous broker-dealer downplays the risk of these investments while emphasizing the potential income that the investments may provide.
Specifically, The White Law Group is investigating the following NGAS Partners’ offerings:
NGAS Partners 2008-A LTD
NGAS Partners 2009-A LTD
NGAS Partners 2010-A LTD.
To determine whether your broker-dealer may be liable for your investment losses in an NGAS Partners investment, please contact The White Law Group at (888) 637-5510 for a free consultation.
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. Please visit us on the web at www.whitesecuritieslaw.com.