Concerned about your investment in White Pine Minerals LLC?
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended high risk private placement investments like White Pine Minerals LLC to investors.
According to SEC filings, White Pine Minerals LLC, based in Midland, Texas, filed a form D to raise capital from investors in 2018. The securities offering is reportedly “oil and gas” and the total offering amount sold to investors was purportedly $10,883,684.
The problem with Reg D private placement investments such as White Pine Minerals LLC is that they often 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. Lack of liquidity can also be a problem for investors.
Investments such as these are typically sold by brokerage firms in exchange for a large up-front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%. In this particular offering, the sales commissions and fees were estimated at 8% of the offering amount,” according to a filing with the SEC.
An additional risk inherent to oil and gas investments is the general risk that comes with the energy market – a market that has seen enormous losses due to the market crisis amid the Covid-19 global pandemic.
For more information on Reg D private placement investments please see:
Filing a Complaint against your Brokerage Firm
Despite the risks of investing in alternative investments– such as a private placement investment– brokerage firms continue to push this type of product because of the high commissions associated with their sale and creation.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration.
FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Free Consultation with a Securities Attorney
If you have concerns regarding your investment in White Pine Minerals LLC or another Reg D private placement investment, The White Law Group may be able to help you. To speak with a securities attorney about your options, please call the office at 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 White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.