Reef Oil & Gas – Reef Securities – Recover your Losses
Have you suffered losses investing in a Reef Securities offering? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA arbitration claim against the firm.
According to The Financial Industry Regulatory Authority (FINRA), the regulator has censured and fined Reef Securities $40,000 for failure to timely issue revised prospectus and notice of rescission, as well as advertising violations.
According to a Letter of Acceptance, Waiver and Consent, from December 4, 2014 through August 27, 2015, Reef Securities failed to timely notify investors of a right of rescission following the issuance of an updated General Partners Audited Balance Sheet dated December 31, 2013 and approval of a Revised Prospectus for the Reef Oil and Gas Drilling and Income Fund, L.P.As a result, Reef Securities violated FINRA Rule 2010.
Reef as the dealer-manager was required by law to send a revised prospectus to all investors of the Reef Oil and Gas Drilling and Income Fund, but allegedly failed to do so.
In addition, from February 2015 through May 2015, Reef distributed four communications related to another investment, referred to as Offering M, to investors. All four of the communications purportedly failed to provide balanced presentation or a sound basis for evaluating the investments being promoted, contained misleading and unwarranted claims, and, in addition, made prohibited investor profit projections, according to the AWC.
The communications allegedly failed to provide an adequate discussion of the key risks associated with the investment, such as the illiquid nature of the investment, the related partnership’s limited operating history, the lack of a guarantee on returns or distributions, and possible loss of any principal invested.
Recover your Losses
Reef Securities offerings 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 and bonds. An additional risk inherent to Reef 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 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 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.
If you suffered investment losses Reef Oil & Gas Drilling and Income Fund or another Reef Securities offering you may be able to recover your losses. 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.