Recovery of Investment Losses in Bakken Drilling Fund IV
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended high risk oil and gas partnerships like Bakken Drilling Fund IV LP to investors.
For many investors, the decline in oil prices in the last two years may be cause for concern. Oil and gas investments involve substantial risks and are only appropriate for sophisticated investors.
Bakken Drilling Fund IV is sponsored by Coachman Energy Partners. Coachman Energy operates as an energy company that focuses on pursuing opportunities in the Bakken Shale and other unconventional shale oil plays in North America, according to Bloomberg. The company reportedly focuses on acquiring oil and gas assets in Kansas, Oklahoma, Wyoming, and Texas. The company was founded in 2006 and is based in Greenwood Village, Colorado.
Coachman Energy Partners often raises money through Regulation D private placements like the company did with Bakken Drilling Fund IV.
Private Placements under Regulation D
Reg D private placements, like Bakken Drilling Fund IV, generally involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. Interests in private placements are often sold as unregistered securities and lack the same regulatory oversight as more traditional investment products.
Unfortunately, some brokers may have downplayed the risks associated with private placement investments and misled investors into thinking that they are “safe” investment products. The high sales commission brokers earn for selling interests in private placements may have provided some brokers with enough incentive to push the product to unsuspecting investors.
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.
If a broker makes an unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
Free Consultation with a Securities Attorney
It may be possible to recover investment losses incurred as a result of your purchase of Bakken Drilling Fund IV LP through FINRA arbitration. For a free consultation with a securities attorney, please contact The White Law Group at (888) 637-5510.
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 Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.