MDS 2020 Marcellus Shale Development LP – Securities Investigation
Are you concerned about investment losses in MDS 2020 Marcellus Shale Development LP? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
MDS Energy Development LLC and its affiliated companies have been tapping the Appalachian basin since 2006, sponsoring both public and private direct participation oil and gas investment partnerships, according to its website.
The company often raises money through Reg D private placement offerings like the company did for MDS 2020 Marcellus Shale Development LP. The total offering amount sold to investors was purportedly $59,467,491. The sales commissions and fees were estimated at more than 6% of the total offering amount.
These Reg D private placements are then typically sold by brokerage firms in exchange for a large up-front sales commission.
The trouble with alternative investment products, like MDS 2020 Marcellus Shale Development LP, is that they involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. Alternative investments are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products. An additional risk inherent to MDS offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
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 liable for investment losses.
Free Consultation with a Securities Attorney
To determine whether you may be able to recover investment losses incurred as a result of your purchase of MDS 2020Marcellus Shale Development LP or another MDS Energy Partners private placement 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 Seattle, Washington. For more information on the firm, visit www.WhiteSecuritiesLaw.com.
To learn more about the investigation, please see: