March 10, 2020 Comments Off on Crestwood Equity Partners LP MLP Investigation Blog, Current Investigations, Securities Fraud

Crestwood Equity Partners LP MLP Investigation

Crestwood Equity Partners LP MLP Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Crestwood Equity Partners LP MLP Investment Losses

Have you suffered losses investing in Crestwood Equity Partners LP MLP? If so, the securities attorneys of 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.

Crestwood Equity Partners (NYSE:CEQP) operates as a master limited partnership.  A Master Limited Partnership (MLP) is a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publicly traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities.

Unfortunately for investors, most oil and gas MLPs are down substantially in the last year. According to Yahoo Finance, in the past year, Crestwood Equity Partners LP’s share price has reportedly declined 77%.

This is not the first time that Crestwood Equity Partners LP has run in to trouble as a result of declining oil prices.  Like a lot of MLPs, Crestwood Equity Partners found itself in a tight spot when the oil market began turning down in late 2014.

MLP’s are extremely complex and risky. They are only suitable for wealthy, sophisticated retail investors or institutional investors.The White Law Group is investigating the liability that brokerage firms may have for recommending Crestwood Equity Partners LP to their clients. 

Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

The firm has found that certain advisors over-concentrate their clients in MLPs as a mechanism for “juicing yield” but without fully disclosing the risk of such a strategy.

If you suffered losses in Crestwood Equity Partners, LP, call the securities attorneys at The White Law Group at 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 White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.

 

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