Lucas Energy Investment Losses
Have you suffered investment losses in Lucas Energy, Inc.? If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Resolution claim against the brokerage firm that sold you the investment.
According to a press announcement, Lucas Energy, Inc. (NYSE MKT: LEI) changed its name to Camber Energy, Inc., (NYSE MKT CEI) effective January 5, 2017. The company, based in Houston, Texas, is an independent oil and gas company engaged in the development of crude oil and natural gas in the Austin Chalk and Eagle Ford formations in south Texas, the Permian Basin in west Texas, and the Hunton formation in central Oklahoma.
Lucas Energy filed a form D private placement to raise capital from investors 2016 in Houston, Texas.
The trouble with oil and gas investments, like Lucas Energy, is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
An additional risk inherent to these offerings is also the general risk that comes with the energy market. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.
Oil & Gas Investment Losses
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another issue with alternative investments is that the high sales commissions and due diligence fees. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. 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 found liable for investment losses in a FINRA arbitration claim.
If you are concerned about your investment in Lucas Energy or another oil and gas investment, 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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.