Concerned about investment losses in Inergy Midstream LP?
Have you suffered investment losses in Inergy Midstream LP? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
As of October 7, 2013, Inergy Midstream, L.P. was acquired by Crestwood Midstream, L.P., in a reverse merger transaction. Crestwood Midstream Partners, L.P. owns and operates midstream assets in the United States. It operates through Gathering & Processing, Gas Storage & Transportation, and NGL & Crude Services segments. The company gathers, compresses, treats, processes, stores, and transports natural gas through pipelines. The company was founded in 2004 and is headquartered in Houston, Texas.
Crestwood Midstream Partners, L.P. often raises money for investments through Reg D private placement offerings like the company did for Inergy Midstream LP. 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 trouble with alternative investment products, like Inergy Midstream LP, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds. An additional risk inherent to Inergy Midstream LP offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to 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.
The Trouble with Reg D Private Placements
However, another problem with Reg D private placements is that the high sales commission brokers earn for selling such products sometimes can provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and 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.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Inergy Midstream LP or another private placement investment, 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.