Investigating Potential Claims Involving Atlas Resources Series 28-2010 L.P.
Did you lose money investing in Atlas Resources Series 28-2010 L.P. at the recommendation of your financial advisor? If so, the attorneys at 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.
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 Resource Partners is an oil and gas company. Atlas often raises money for investments through Reg D private placement offerings like the company did for Atlas Resources Series 28-2010 L.P. These private placements are then typically sold by brokerage firms in exchange for a large up front commission. The fees can be very high — usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The Trouble with Reg D Private Placements
The trouble with Reg D investments like Atlas Resources Series 28-2010 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. An additional risk inherent to Atlas Resource Partners’ offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like Atlas Resources Series 28-2010 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 have high sales commission and due diligence fees. That means that brokers may have enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may even misrepresent the basic features of the products – usually focusing 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.
If you’ve suffered investment losses in Atlas Resources Series 28-2010 L.P. at the recommendation of your financial advisor, 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.