November 27, 2018 Comments (0) Blog

Fairway Energy Partners – Investigation

Fairway Energy Partners

Securities Investigation- Fairway Energy Partners

Are you concerned about your investment in Fairway Energy Partners? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

Fairway Energy LP owns and operates an underground crude oil storage facility outside of Houston, Texas, according to reports. The company along with two subsidiaries and affiliates, has filed a chapter 11 petition for relief in the Bankruptcy Court for the District of Delaware.

Fairway Energy has filed as a result of fluctuating demand for storage services and cost overruns incurred during expansion of the storage facility, according to various reports.

According to SEC filings, Fairway Energy Partners filed a Form D to raise capital from investors in 2015. The offering type was equity.

Investments such as these are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

The problem with private placement investments such as Fairway Energy Partners is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

Investigating Potential Claims

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements, like Fairway Energy Partners to investors.

Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

If you have concerns regarding your investment in Fairway Energy Partners and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

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 White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.