Old Ironsides Energy LLC Reportedly Fined $1 Million
SEC Sanctions Old Ironsides Energy for Fund’s Allegations of Misleading Marketing Materials
Are you concerned about your investment with Old Ironsides Energy, LLC? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim.
Old Ironsides Energy, a Boston, Mass.-based registered investment adviser, has reportedly agreed to pay a $1 million penalty to settle charges in connection with allegations of misleading marketing materials involving its fund, Old Ironsides Energy Fund II LP.
The firm, an investment adviser registered with the Securities and Exchange Commission (SEC), has approximately $1.75 billion in assets under management and is located in Boston, MA.
According to an SEC administrative order on April 17, from 2014 through part of 2015, Old Ironsides Energy reportedly distributed marketing materials for a private fund, Old Ironsides Energy Fund II LP that allegedly “omitted certain information regarding the character of a legacy oil and natural gas investment and thereby rendered the marketing materials misleading.”
The SEC says that the marketing materials identified “a large, legacy investment with strong, positive returns” as an early stage direct drilling investment over which the firm had direct management in partnership with project operators, when instead it was allegedly an investment in a private fund advised by a third party.
According to the order, Old Ironsides’ principals had reportedly made the legacy investment when they were managing a portfolio of oil and gas investments for a previous employer (“Legacy Portfolio”).
The fund’s marketing materials’ omission was significant for several reasons, according to the SEC, including that the returns on the private fund investment improved the performance for Legacy Portfolio DDIs, and the marketing materials provided that OIE Fund II would invest in DDIs and stand-alone private equity investments, but not in other private funds.
Further, Old Ironsides purportedly failed to implement its policies and procedures prohibiting all marketing materials from omitting information necessary to avoid materially misleading information, when it created marketing materials that categorized the private fund investment as an early stage DDI.
Investigating Potential Securities Claims
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Old Ironsides Energy Fund II LP to investors.
Securities markets have taken a huge hit amidst the Covid-19 global pandemic, and oil prices are at an all-time low. Energy investments such as Old Ironsides Energy typically involve a high degree of risk. These investments may seem wise at first, until the dramatic drop in distributions.
Prior to making recommendations to an individual investor, brokerage firms are required to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
If you are concerned about your investment with Old Ironsides Energy LLC, The White Law Group may be able to help. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
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, please visit https://www.whitesecuritieslaw.com.