OIL & GAS PRIVATE PLACEMENT ATTORNEYS BASED IN NEW YORK

Private Securities Offerings for Oil & Gas Ventures Nationwide

Countless clients have been encouraged to invest in oil and gas private placements because of the latest oil boom. However, many of them invest without clear informed regarding the risks involved, resulting in various concerns including securities fraud claims relating to misrepresentation.

For personalized information regarding your oil and gas private placement case, contact Weltz Law by calling (877) 905-7671.

Securities Fraud Claims

Ethical and well-informed financial advisors and brokers have the responsibility to recommend only suitable products to their clients for investments. They are also required to be transparent on the risks and possible yields of such products. To do this, the broker must not only depend on the oil and gas investment broker for information but instead independently review the investment by checking the statements and claims regarding the investment with his ‘due diligence report’.

The biggest known risk in oil and gas investment is securities fraud. Misrepresentation and lack of transparency made to potential investors include:

• The promise of little risk while getting high returns.
• The pressure from sales personnel to make the purchase quickly.
• The pitching of sales using false information including the high price of oil and gas.
• Use of terms including ‘guaranteed returns’ deals that ‘cannot be missed’.
• Misinforming investors on ‘new technology’ that gives higher production from low-producing wells.

Oil and Gas Investment Losses

Everyone knows that the price of oil went down significantly in 2014 and 2015. What many people may not know is that some stockbrokers may have taken advantage of the situation to commit fraud, falsely representing oil and gas investments as a high yield investment program (HYIP). When information is falsely represented, whether deliberately or unintentionally, your broker can be guilty of failing to conduct due diligence. In some other cases, oil and gas investments may have been overconcentrated within a client’s portfolio, resulting in huge losses when prices dropped.

Yet others may have been fooled into investing in a scheme that does not exist. Scammers often do this by claiming that the limited partnership was created in a different state from the physical location of the company or oil field. As such, investors are discouraged from visiting to verify the authenticity of the scheme.

Proving Oil and Gas Investment Losses

Whether you have suffered an oil and gas investment loss due to lack of diligence on your broker’s part or if you have been scammed, it can be difficult to prove. If you suspect that the scheme you invested in is fraudulent, one way of confirming it is to check with the state securities commission whether the business is registered. In addition, you can also check if any claims have been filed against the investment representative or company. When trying to prove oil and gas investment loss due to fraud, always do so with an experienced attorney by your side.

Recovering Damages from Oil and Gas Investment Losses

It can be difficult to reclaim your losses from oil and gas investment scams without experienced securities lawyers to help you. For instance, it may be impossible for you to visit the supposed oil field or company headquarters if it is out of state. A good lawyer can increase the chances of recovering your money through ensuring legal processes.