Recovery of investment losses in Tidal Petroleum offerings
Have you suffered losses investing in Tidal Petroleum? 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.
Tidal Petroleum was formed in June 1990 to engage in the acquisition, exploration, development, and production of oil and gas reserves in Texas, according to their website.
According to SEC filings, Tidal Petroleum filed a Form D in 2010 to raise capital. The Tidal Group Inc. sold private placement offerings of oil and gas interests in Texas.
As we reported earlier, The Tidal Group Inc. was sanctioned by FINRA in 2015 for allegations that it provided inaccurate information to investors in some of the private placement offerings in some prospects.
The PPMs for the prospects included maps that identified the proposed drilling location, as well as surrounding wells. The maps contained legends that included a symbol for plugged and abandoned wells. The findings stated that maps in the offerings’ PPMs did not have these wells marked as plugged and abandoned.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like those offered by the Tidal Group, Inc.
The Trouble with Private Placements
The trouble with alternative investment products, like Tidal Petroleum Inc., 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 this type of offering 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.
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 Tidal Petroleum Inc., please contact The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. 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.