Investor Alert: USEDC 2021 Drilling Fund LP
Are you concerned about your investment in USEDC 2021 Drilling Fund 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.
U.S. Energy and Development Corporation is an exploration & production (E&P) operating company which designs and manages “direct investment opportunities in energy” for accredited investors and institutional partners, according to its website. The company has been raising capital from investors through oil and gas private placements for many years.
The trouble with oil and gas private placements like USEDC 2021 Drilling Fund LP 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 limited partnerships is the general risk that comes with the energy market. The energy market has seen enormous ups and downs over the past few years due to the Covid-19 global pandemic. These investments may seem wise at first, until the dramatic drop in distributions. These oil and gas private placements also tend to come with extremely high fees and sales commissions.
In 2020, the company filed a Form D to raise capital from investors for the offering USEDC 2021 Drilling Fund LP. In this particular offering the fees are estimated at 10% of the total offering amount including Dealer-Manager Fee – 2%; Sales Commission – up to 7%; Due Diligence Fees – 0.5%; Marketing Expense Fee – 0.5%, according to the SEC filing.
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 USEDC 2021 Drilling Fund 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 USEDC 2021 Drilling Fund LP, 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.
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