Fulcrum Production Partners LP– Securities investigation
Are you concerned about your investment in Fulcrum Production Partners LP? If so, the securities attorneys at The White Law Group may be able to help you.
According to its website, Fulcrum Exploration LLC is a “Texas based independent oil and gas company experienced in exploration and production.” The company is actively developing its producing properties and is engaged in efforts to acquire additional undeveloped leaseholds.
According to Haynes & Boone, Fulcrum Exploration, LLC filed for bankruptcy protection on June 24, 2018.
The company filed a form D for the offering Fulcrum Production Partners LP to raise capital from investors in 2007 in Flower Mound, Texas.
The trouble with alternative investment products, like Fulcrum Production Partners LP, 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 these offerings is also the general risk that comes with the energy market. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.
Is a Private Placement Investment Suitable for you?
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another issue with alternative investments is that the high sales commissions and due diligence fees. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may 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 found liable for investment losses in a FINRA arbitration claim.
Free Consultation with a Securities Attorney
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Fulcrum Production Partners LP to investors.
If you are concerned about your investment in Fulcrum Production Partners LP or another private placement investment, 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.