Recovery of Investment Losses in Energy Hunter Partners 2011-A Ltd.
Have you suffered losses investing in Energy Hunter Partners 2011-A Ltd.? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
The White Law Group continues to investigate the liability that brokerage firms may have for recommending investments in oil and gas private placements such as Energy Hunter Partners 2011-A Ltd.
Magnum Hunter Resources Corporation is an independent oil and gas company engaged in the exploration for of crude oil, natural gas and natural gas liquids in the US and Canada. The company was founded in 1997 and is based in Irving, Texas.
The company often raises money for investments through Reg D private placement offerings like the company did for Energy Hunter Partners 2011-A Ltd. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%.
According to a letter to investors dated May 26, 2016, due to the Magnum Hunter’s bankruptcy filing in December 2015, the partnership in Energy Hunter Partners 2011-A Ltd. has been dissolved. This is bad news for investors.
The Trouble with Private Placements
The trouble with Reg D private placements, like Energy Hunter Partners 2011 A Ltd., is that they involve a high degree of risk and are typically sold as unregistered securities. Alternative investments lack the same regulatory oversight as more traditional investment products like stocks and bonds.
An additional risk inherent to investments like Energy Hunter Partners 2011-A Ltd. is 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. 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.
Another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of products.
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.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Energy Hunter Partners 2011-A Ltd. or another Magnum Hunter Resources 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.