U.S. Energy Genesis Drilling Program V Investment Losses
Are you concerned about your investment in U.S. Energy Genesis Drilling Program V? If so, The White Law Group may be able to help you by filing a claim against the broker-dealer that sold you the investment.
U.S. Energy Development Corporation is an independent oil & gas company that has reportedly invested, operated, and/or drilled more than 3,000 wells throughout 12 states and Canada. U.S Energy is affiliated with a number of drilling programs offering investors limited partnership, according to its website.
Genesis Drilling Program V is a limited partnership launched in 2014. According to a Form D filed by U.S.Energy with the SEC, the total offering amount for Genesis was $50 million. It included more than 12% going towards sales commissions to broker-dealers that sold the investment.
The trouble with oil and gas limited partnerships is that they involve substantial risks and are more appropriate for sophisticated investors.
Many oil and gas LPs have high expense ratios, and due to the decline in the overall health of the oil and gas market, are suffering. Some are on the brink of default, or worse yet, bankruptcy. Such an outcome is extreme, but not unforeseen. It only highlights the unsuitability of these investments for most retail investors – particularly in large concentrations.
Investors may have Recovery Options
Unfortunately, some brokers may have downplayed the risks associated with limited partnerships. They have misled investors into thinking that they are “safe” investment products. The high sales commission brokers earned for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors. Compared to typical stocks or mutual funds that offer 1%-2% commission, the commission for Genesis Drilling Program V is more than 12%.
If a broker misleads a client or makes unsuitable investment recommendations they can be liable for investment losses.
If you have suffered investment losses incurred as a result of your purchase of Genesis Drilling Program V LP, please contact The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm. The firm has offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.