Recovery of Investment Losses in Atlas Resources Public #18-2009 (B) L.P.
Did you lose money investing in Atlas Resources Public #18-2009 (B) L.P. at the recommendation of your broker? If so, The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.
Atlas Resources Partners often raises money for investments through Reg D private placement offerings like the company did for Atlas Resources Public #18-2009 (B) L.P. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
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.
Atlas Resources Partners LP filed for bankruptcy protection on July 26, 2016. They joined dozens of struggling oil and gas producers that were pushed into Chapter 11 after energy prices began dropping in 2014. Since the beginning of 2015, at least 85 North American oil and gas producers have defaulted, according to Haynes & Boone LLP. Those cases involve about $61.2 billion in cumulative debt, the law firm said in a June 30 report.
The trouble with alternative investment products, like Atlas Resources Public #18-2009 (B) L.P., is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Are Oil and Gas Private Placement Investments Suitable for you?
The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling oil and gas private placements like Atlas Resources Public #18-2009 (B) L.P.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Reg D private placements typically have high sales commission and due diligence fees. This incentive can provide brokers with motivation to push the product to unsuspecting investors. Often, brokers will focus on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses in a FINRA arbitration claim.
You may be able to recover investment losses incurred as a result of your purchase of Atlas Resources Public #18-2009 (B) L.P. Please contact The White Law Group at 1-888-637-5510 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 Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.