April 9, 2020 Comments Off on Yuma Energy Inc. Securities Investigation Blog, Current Investigations

Yuma Energy Inc. Securities Investigation

Yuma Energy Inc. Securities Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Concerned about your investment in Yuma Energy Inc.?

Are you concerned about your investment in Yuma Energy Inc.? 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.

According to reports this week, Yuma Energy, Inc. (NYSE American: YUMA) announced today that it has been notified by its lender, YE Investment LLC, an affiliate of Red Mountain Capital LLC., that all outstanding payments under its existing Credit Agreement are currently due and that its Restructuring Agreement with Red Mountain has been terminated.

Yuma reportedly disclosed in a press release on March 20, that it was not in compliance with the various terms of the Restructuring Agreement and related credit arrangements, and no further funds were available to Yuma under the facility.

According to SEC filings, the company filed a Form D to raise capital from investors through the offering Yuma Companies, Inc. in 2012. According to the filings, the offering type was equity and the total offering amount was reportedly $25,000,000. The sales compensation recipients were purportedly The PrinceRidge Group LLC and Sanders Morris Harris, according to the Reg D.

The White Law Group is investigating potential securities claims involving FINRA registered brokerage firms who may have unsuitably recommended high risk investments such as Yuma Energy Inc. to investors.

These investments are often riskier and more complicated than traditional investments, and are generally only suitable for high net worth, sophisticated investors. They often have high fees and sales commissions, making them an attractive product for financial advisors to sell.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

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

Free Consultation with a Securities Attorney

If you are concerned about your investment in Yuma Energy Inc. the White Law Group may be able to help you. To speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection 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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