Concerned about investment losses in Vanguard Stimulation Services?
Have you suffered losses investing in Vanguard Stimulation Services? If so, The White Law Group may be able to help you recover your losses through a FINRA Arbitration claim.
According to Bloomberg, Vanguard Stimulation Services LLC provides gas and oil field services. It designs and implements fracture stimulations to enhance the recovery of oil and natural gas in shale reservoirs. The company was incorporated in 2007 and is based in Shawnee, Oklahoma. As of March 2, 2010, Vanguard Stimulation Services, LLC operates as a subsidiary of Trican Well Service, L.P.
The White Law Group is investigating the liability that brokerage firms may have for recommending investments in oil and gas private placements such as Vanguard Stimulation Services.
Vanguard Stimulation Services often raises money for investments through Reg D private placement. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%.
The Trouble with Private Placements
The trouble with alternative investment products, like Vanguard Stimulation Services, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds.
An additional risk inherent to Vanguard offering 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. They must 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.
However, another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of products.
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.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Vanguard Stimulation Services or another 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 Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.