Bellatorum Resources Closes its Doors after Raising $31 Million from Investors
Are you concerned about your investment in Bellatorum Resources offering? 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.
According to an article in Reuters on April 22, 2021, the founder of Bellatorum Resources LLC which raised close to $31 million from “wealthy individuals,” closed its doors on April 9, 2021 and contacted U.S. prosecutors including the FBI and the Department of Justice.
Bellatorum Resources reportedly bought mineral rights in Texas shale fields, looking for an appreciation as oil and gas drilling rose. The founder reportedly claims that the company’s two largest funds have almost no assets left after he borrowed $6.6 million against the assets and the lender foreclosed earlier this year, according to the Reuters article.
The company reportedly launched its $100m Sentinel Energy Investments, LP fund at the end of 2020. Capital raised for the Sentinel fund was be used to purchase oil and gas royalties in the Permian Basin, Eagle Ford Shale, Haynesville Shale, and Barnett Shale, all located in the State of Texas, according to Pipe Exchange. Sentinel is reportedly Bellatorum’s eighth fund.
The company also filed REG Ds in 2018 and 2020 to raise capital from investors for two funds, Bellatorum Land & Minerals LP and Bellatorum Texas Royalties LP.
The trouble with alternative investment products, like Bellatorum Resources’ offerings, 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 oil and gas lps is the general risk that comes with the energy market. The energy market has seen enormous ups and downs over the past two years due to the Covid-19 global pandemic. These investments may seem wise at first, until the dramatic drop in distributions.
Investigating Potential Claims
The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like Bellatorum Land & Minerals LP to investors.
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.
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 Bellatorum Land & Minerals LP or another Bellatorum Resources offering, 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. 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.