Concerned about your investment in Cardinal Energy Group?
Have you suffered losses investing in Cardinal Energy Group at the advice of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
On March 19, 2019, the Securities and Exchange Commission charged Cardinal Energy Group, Inc., a Texas-based oil-and-gas penny stock company and its former CEO with fraudulently concealing the loss of the company’s major source of revenue.
In mid-2017, Cardinal Energy Group reportedly lost control of its interest in two oil-and-gas leases that accounted for nearly all of the company’s revenue, according to the SEC’s complaint.
The complaint alleges that after receiving the news, Cardinal and its former CEO filed quarterly reports with the SEC that misrepresented to investors that the leases were still expected to be part of the company’s future business plans.
During this period, while concealing the setback to the business, Cardinal and its CEO allegedly raised additional money from investors, misreported stock ownership, and failed to make the required disclosures that its CEO sold millions of shares of Cardinal stock.
Investigating Potential Lawsuits in Cardinal Energy Group
The White Law Group is investigating potential securities fraud claims involving broker dealers who may have unsuitably recommended high riks oil and gas investments such as Cardinal Energy Group to investors.
Broker dealers 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.
Often brokers will misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
A broker or brokerage firm can be held liable if they make an unsuitable investment recommendation or fail to adequately disclose the risks. The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve such disputes.
If you have suffered investment losses in Cardinal Energy Group or another oil & gas investment the securities attorneys at The White Law Group may be able to help you. 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.