Investors burned in Memorial Resources Development (MRD) can file a FINRA arbitration claim to recover their investment losses. MRD was an independent natural gas and oil company engaged in the acquisition, exploration and development of natural gas and oil properties in North Louisiana. In May of 2016, MRD and Range Resources Corproration merged together. Unfortunately, many brokers did not do the proper due diligence on MRD before recommending it to clients. In addition, some brokers recommended to large a concentration in the investment. These investment losses might be recoverable through a FIRNA arbitration claim or lawsuit. Please call our investment fraud law firm for a free contingency fee analysis.
Vanguard Natural Resources, LLC acquires and develops oil and natural gas properties in the United States. It owns properties, and oil and natural gas reserves primarily located in 10 operating basins. This fund was heavily sold to investors in the U.S. and has sustained an almost complete loss and now trades less than $1 a share. Many of the purchasers of VNR may have actionable claims against their brokjers for fraud, unsuitable investment recomneations and other related actions. Please call us to ehar all of your options.
Stoltmann Law Offices is investigating Gary Bradshaw, a financial advisor with First Dallas Securities. Bradshaw was accused of concentrating large portions of an elderly customer’s portfolio into risky oil and gas investments. Allegedly, by 2014, Bradshaw had concentrated over 100% of the client’s account into three oil and gas investments: CVR Partners, LP, Kinder Morgan, and Legacy Reserves LP. Due to the losses in oil and gas stocks, the customer suffered over $160,000 in losses to her retirement savings. In all, because of his unsuitable investment recommendations, the client suffered over $250,000 in losses. Advisors such as Bradshaw have a duty to only recommend those securities that are suitable for investors. The broker must take into account the client’s age, net worth, investment objectives, and other things before recommending and selling securities. If he does not, his brokerage firm can be responsible for losses.
Bradshaw was registered with Rauscher Pierce Refsnes in Dallas, Texas from August 1985 until March 1990 and is registered with First Dallas Securities Inc. in Dallas, Texas and has been since February 1990. He has one customer dispute against him. Please call our securities law offices in Chicago at 312-332-4200 to speak to an attorney about your options of suing First Dallas Securities for investment losses on a contingency fee basis in the FINRA arbitration process. The call is free with no obligation.
Stoltmann Law Offices is investigating Joey Broussard, a former adviser with Source Capital Group. The Financial Industry Regulatory Authority (FINRA) barred him from the securities industry after alleging that he forged the signature of one of his customers. He allegedly convinced the customer to invest $15,000 in an oil and gas venture called Bayou City Exploration. The customer then asked Broussard to rescind his investment and he subsequently forged the customer’s signature on a document. This is against securities rules and regulations.
Broussard was registered with Red River Securities in Plano, Texas from December 2009 until February 2010 and Source Capital Group in Allen, Texas from July 2010 until April 2014. He is not registered within the industry. If you or someone you know invested money with Joey Broussard, we may be able to help you bring a claim against his former firm, Source Capital Group for investment losses. We sue firms like Source Capital Group in the FINRA arbitration forum on a contingency fee basis. Please call today. 312-332-4200. The call is free with no obligation.
Stoltmann Law Offices is investigating VSR Financial Services for alleged fraud claims against the firm. A 70 year-old investor retiree filed claims with the Financial Industry Regulatory Authority (FINRA) against VSR claiming that the firm, and former broker, John Towers, put his life savings into an illiquid “alternative” investment program and other non-conventional investments against his instructions. The customer is alleging he suffered losses in excess of $845,807 due to alleged fraud, violations of the Texas Security Act, breach of contract, breach of duty, negligence and failure to supervise and secondary liability. He is seeking actual damages, well-managed account damages, benefit-of-the-bargain damages, rescission, disgorgement of fees and commissions, punitive damages, attorneys’ fees and interest. VSR allegedly put clients into unsuitable investments such as non-traded REITs, public REITs, equipment leasing programs, oil and gas drilling programs, promissory notes and commodity funds. Many of these investments are illiquid and not suitable for all investors.
As of April 2016, at least 30 customers filed complaints for alleged misconduct, including unsuitability, self-dealing and misrepresentations, as well as two regulatory actions against Mr. Towers. In 2015, VSR censured and fined VSR $550,000 for failure to supervise unsuitable sales of non-conventional investments. Mr. Towers was registered with VSR Financial Services in Plano, Texas from July 2002 until April 2014. He is currently registered with Ameriprise Financial Services in Hurst, Texas and has been since April 2014. Please call our law offices today to speak to an attorney for free about your options of suing VSR in the FINRA arbitration process if you feel you may have a claim against the firm. 312-332-4200.
The Financial Industry Regulatory Authority (FINRA) has complaints against Charles Geraci. They allege that he violated securities laws that include making unsuitable investments, breach of fiduciary duty, fraud, misrepresentations, and negligence, among other claims. Most of the claims tend to relate to allegations regarding the inappropriate sale of direct participation products such as limited partnerships, equipment leasing, oil and gas investments and non-traded real estate investment trusts (non-traded REITs) and variable annuities. The complaints specify certain oil and gas programs and United Mortgage Trust (UMT).
Many of these products are very unsuitable for investors, as they are risky and illiquid. A broker has a duty to only recommend those investments that are suitable for clients, and his firm may be liable if the client loses money in these investments. Please call our law firm today if you have suffered similar losses, and you may speak to an attorney for free about your options of suing to recover losses in the FINRA arbitration forum on a contingency fee basis.
According to his online BrokerCheck report, Geraci was registered with The Variable Annuity Marketing Company, The Prudential Insurance Company of America, Pruco Securities Corp, Cadaret, Grant & Co., Sun Investment Services Company, Signal Securities Inc., Walnut Street Securities, D.H. Hill Securities, VSR Financial Securities and SagePoint Financial. He is currently registered with VSR Financial Services in The Woodlands, Texas and has been since January 2014. He has six customer disputes against him, one of which is currently pending.
The Financial Industry Regulatory Authority (FINRA) is expecting a massive wave of arbitration claims against brokers and their brokerage firms in the coming months, thanks to bad energy investments. Because of the huge drop in oil prices, many of the cases being discovered are ones in which an adviser put too much of a client’s money into energy investments that turned out to be basically worthless as U.S. oil prices collapsed. Many of the customers are elderly and too much of their portfolios were put into risky oil and gas investments. And adviser must take into account if the investment is suitable for the client or not, and age, net worth, investment objectives and risk tolerance play large factors in determining this. Many advisers put much of their client’s money into oil and gas and energy investments, because the commissions were high. Now, with oil prices tumbling, it is a very bad situation for those whose portfolio was concentrated in the resources. High-yield default rates in the energy sector are expected to spike to 20% this year from about 7% at the end of 2015, and less than 1% in December 2014, according to Fitch ratings. The trailing 12 month default rate among exploration and production companies will jump even higher by the end of 2016, to between 30% and 35%, also Fitch estimates.
Another issue investors could see is that many do not become aware of the extent of their losses until they receive their year-end statements from their broker, or around the month of April. This could very well solidify the fact that analysts are predicting many more arbitration claims in the coming month and months ahead. Some client’s money was concentrated almost exclusively in oil and gas investments and these individuals are expecting to be hit especially hard. Some of the investments include: Linn Energy, AmeriGas Partners and British Petroleum, among others. Linn Energy, in a filing with the Securities and Exchange Commission (SEC) on Tuesday stated that a Chapter 11 bankruptcy filing may be “unavoidable.” This means serious trouble for investors. Call us today if you have experienced losses with Linn Energy or other oil and gas or energy investments. We may be able to help you bring a claim against your brokerage firm to recover your money.
Stoltmann Law Offices continues to investigate two energy and gas master limited partnerships (MLPs) for 2016. They are LINN Energy (NASDAQ: LINE) and Williams Partners (NYSE: WPZ). Due to the long, sustained decline in oil and gas prices, both companies stocks are trading down vast percentages since oil prices plummeted. Williams Company just had its credit rating downgraded to “junk” status, which means new debt will come with higher interest rates, and many of the proposed projects will not be as economical as they had been previously. And most oil companies are expecting 2016 to be a repeat performance of oil and gas where stocks are concerned. LINN is still looking at $10 billion in debt, an oil price that barely makes a return and a suspended distribution that all but annuls the point of owning a partnership in the first place.
Oil and gas MLPs may not be suitable for all investors, as they are risky investments. A broker must take into account a client’s age, net worth, investment objectives and other considerations before recommending an investment. If he does not, his firm may be liable for client losses. Please call our Chicago-based securities law firm to speak to an attorney if you believe you have a claim against your brokerage firm or broker. The call is free with no obligation.
Stoltmann Law Offices continues to investigate investor-related losses in oil and gas and commodities related investments. Investors may have legal options for these unsuitable investments if they were recommended by a broker. Your broker has a duty to recommend only suitable investments, by taking into account your age, net worth and investment objectives, among other things. Stoltmann Law Offices has been tracking investments in a number of leveraged master limited partnerships (MLPs). Among those being investigated is Neuberger Berman MLP Income Fund (NYSEMKT:NML) with $1 billion in assets. Over the past year, the fund has lost 60%.
In the past year alone, investors have lost $20 billion in publicly traded master limited partnerships and publicly traded oil funds. But big banks such as Citigroup, Barclays and Wells Fargo have made an estimated $1.1 billion in fees for selling these products. Brokers make large commission off of these products as well. MLPs may not be suitable for all investors, and investors can sustain losses. Please call us today for a free consultation with one of our attorneys.
Stoltmann Law Offices has learned that Energy & Exploration Partners of Fort Worth is seeking Chapter 11 bankruptcy protection after suppliers and service companies sought payment for unpaid bills. The company owns about 61,000 net acres in Texas and Wyoming, with the Texas holdings located mostly in Woodbine and Eagle Ford shales. The company made the filing after Schlumberger Technology, Baker & Hughes, and Cactus Pipe & Supply initiated an involuntary bankruptcy against the company. Several other oil and gas companies have filed for bankruptcy recently, what with the price of oil dropping sharply. Our securities law office is interested in speaking to investors who were recommended to invest in oil and gas by their broker. If so, you may have a case against your brokerage firm because not all oil and gas investments are suitable for every retail investor. They tend to be risky and illiquid. A brokerage firm can be sued for not reasonably supervising their brokers and we take these cases on a contingency fee basis, which means we do not make money unless you recover. The call to us is free. Please call today.