USEDC 2018 B Drilling Fund LP Investigation
The White Law Group is investigating potential claims involving the liability that some broker dealers may have for unsuitably recommending U. S. Energy Development Corp. drilling funds to investors.
According to SEC filings, from 2016 to 2019, U. S. Energy Development Corp raised money from investors through Regulation D private placement offerings. Reg D private placements are typically sold by brokerage firms in exchange for a large up front commission.
The trouble with alternative investment products, like USEDC 2018 B Drilling Fund LP, is that they involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds.
Alternative investments are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products. They often have high fees and commissions that benefit the brokers who sell them.
In the case of USEDC 2018 B Drilling Fund LP, the “Dealer-Manager Fee – 2%; Sales Commission – up to 7%; Due Diligence Fee – 0.5%; Marketing Expense Fee – 0.5%. 2% of Fees and Commissions will be paid by Sponsor.”
An additional risk inherent to U.S. Energy Development Corp. 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 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 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 are concerned about your high risk energy investment in USEDC 2018 B Drilling Fund LP, 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.