Investigating Potential FINRA Claims: S.T.L. Resources Drilling Fund B L.P.
Are you concerned about your investment in S.T.L. Resources Drilling Fund B L.P.? 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 its website, S.T.L. Resources was designed “to be an agile, vertically integrated E&P enterprise” engaged in the acquisition, exploration and development of natural gas and oil properties in the Appalachian Basin. The company recently filed three Regulation D equity offerings in 2018- 2020 to raise capital from investors for the following:
S.T.L. Resources Drilling Fund A L.P.
S.T.L. Resources Drilling Fund B L.P.
S.T.L. Resources Drilling Fund C L.P.
The trouble with alternative investment products, like S.T.L. Resources Drilling Funds, 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 S.T.L. offerings is also 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.
Potential Claims to Recover Financial Losses
The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like S.T.L. Resources Drilling Fund B L.P. 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.
However, another problem with Reg D private placements 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 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.
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 S.T.L. Resources Drilling Fund B L.P. or another S.T.L. 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.