Securities Regulators Issue Warning- Oil & Gas Investment Fraud

The North American Securities Administrators Association (NASAA) was formed in 1919 and is comprised of  the state securities regulators.

NASAA has issued a warning to investors regarding oil & gas scams. Here is a link to the entire article.

The SEC has also issued a warning to investors: Oil and Gas Scams: Common Red Flags and Steps You Can Take to Protect Yourself. You should read it if thinking of investing in oil and gas.

Every investor contemplating an
investment in an oil and gas limited partnership, private placement
offering, Reg D offering or other form of entity should take the time to
read the articles.

From the NASAA article, here are some of the misrepresentations investors should be aware of in the high pressured sales pitch that many promoters use when cold calling or sending unsolicited emails:

  • you will have an interest in a well that cannot miss
  • the risks are minimal
  • a geologist has given the sales person a tip
  • the salesperson has personally invested in the venture
  • the promoter has a “hit” on every well drilled so far
  • there has been a tremendous “discovery” in adjacent field
  • a large, reputable oil company is operating or planning to operate in the area
  • only a few interests remain to be sold and you should immediately send in your money in order to assure the purchase of an interest
  • this is a special private deal open only to a lucky chosen few investors

Oil & Gas private placements are extremely speculative in nature. The
risk associated with these investments is only suitable for those
individuals who understand and are financially capable of taking the
risk inherent to these products. If you were sold an oil & gas
investment based upon misrepresentations, such as the inaccurate
representation of the production of wells in the target area, or if this
type of investment is unsuitable for a person your age and profile, you
may be able to recover all or a part of your losses through FINRA
arbitration.

Please read the SEC & NASAA warnings linked above before parting with your hard earned dollars.

If you have questions about losses on oil & gas investments or other stock market losses call to speak with an experienced securities attorney.

Nationwide representation.

Rex Securities Law

561 391 1900

FINRA Fines Nobles & Richards -Plano,TX-For Inadequate Disclosure on Oil & Gas Private Placements

Nobles & Richards, Inc. is a broker dealer located in Plano, TX that sells Oil and Gas private placements and limited partnerships. The company was formed in 2007 and its principals are Ilonka Nobles and James Ross Richards.

In October of 2012, FINRA alleged that Nobles & Richards failed to
implement an adequate supervisory system to ensure that it conducted reasonable investigations of an issuer of a regulation D private placement offering of  speculative oil & gas programs. FINRA alleged that the company failed to compare actual well performance with their projections and that:

“If it had, the firm would have discovered that its viability projections were inaccurate. In fact, none of the issuer #1’s wells met the firm’s projections. Nevertheless, the firm continued to recommend and sell its customers interests in issuer #1’s oil and gas private placements. “

Nobles & Richards paid FINRA a fine of  $10,000 to resolve the regulatory matter.

To access the FINRA disclosure record for Nobles & Richards or any of their brokers, see this for more information.

Oil & gas private placements are extremely speculative in nature. The risk associated with these investments is only suitable for those
individuals who understand and are financially capable of taking the
risk inherent to these products. If you were sold an oil & gas investment based upon misrepresentations, such as the inaccurate representation of the production of wells in the target area, or if this type of investment is unsuitable for a person your age and profile, you may be able to recover all or a part of your losses through FINRA arbitration.

If you have questions about losses in your brokerage or investment account, contact us for a no charge consultation to explore your legal rights.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

LPL Financial-Growth Causing Growing Pains-Trouble With Securities Regulators

The New York Times today reported that LPL Financial, an independent broker/dealer with over 13,000 brokers, 6,500 offices and 4.3 million customers is having more and more problems with securities regulators as the company grows.

LPL is now the fourth-largest brokerage firm after Wells Fargo, Morgan Stanley and Merrill Lynch.

According the the NY Times article, LPL’s “low cost model that has aided LPL’s explosive growth has brought with it shortcomings that point to the difficulties regulators face in overseeing far-flung financial advisers.”

It reports that in the last two years state regulators from Illinois, Massachusetts, Montana, Oregon and Pennsylvania have fined LPL for failing to properly supervise the actions of their brokers. We recently reported on LPL’s issues in Massachusetts over non traded REITs.

LPL keeps its overhead low by its franchise like arrangements with brokers, who are independent contractors, rather than employees. The commission split to the broker at LPL is higher leaving less money for compliance per the article.

If you have questions or complaints about losses in your brokerage account, call us for a no charge consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

RSL Investigates Recovery of Direct Invest Tenant in Common (TIC) 1031 Exchange Losses

Rex Securities Law is investigating the recovery of losses for investors who purchased Tenant in Common (TIC) investments sponsored by Direct Invest, a company headquartered in Boston and run by William F. Rand, President, and Peter W. Evans, Principal.

Direct Invest real estate deals, also known as 1031 exchanges, were sold nationwide from 2006-2008 by various broker/dealers and financial planners, including:

  • Invest Financial
  • LPL Financial
  • National Planning Corp.
  • Omni Brokerage
  • Pacific West Securities
  • Regent Financial Group
  • SagePoint Financial
  • Welton Street Advisors

Direct Invest sponsored a number of deals, including these:

  • Direct Invest Braintree Park (Braintree, MA)
  • Direct Invest Brookfield Commons (Richmond, VA)
  • Direct Invest Heron Cove (Merrimack, NH)
  • Direct Invest International Trade Dr (Richmond, VA)
  • Direct Invest Clark’s Hill (Framingham, MA)
  • Direct Invest Omni Way (Chelmsford, MA)
  • Direct Invest N Parham Rd. (Baltimore, MD)
  • Direct Invest Cabot Drive (Baltimore)
  • Direct Invest 829 Middlesex(Billerica, MA)
  • Direct Invest Landover Rd (Landover, MD)
  • Direct Invest Riverbend (Hartford)
  • Direct Invest 615 Route 303 (Blauvelt, NY)
  • Direct Invest University (Waltham, MA)
  • Direct Invest Winding Brook (Glastonbury, CT)

 

A Tenant in Common investment is a real estate investment where multiple parties share ownership of property. The deals sponsored by Direct Invest include Class A/B warehouse, Class A&B office space, and industrial properties.

Many investors were convinced to buy these investments based upon misrepresentations and omissions by the selling broker as to the nature of the risks and without adequate explanation of the illiquid nature of the investment. TIC investments typically generated very high commissions for the broker and his firm.

Time May be Running Out For Bringing Claim

FINRA arbitration rules make it difficult, and sometimes impossible, to pursue claims  on purchases made more than six years prior to the date of filing an arbitration claim. Investors who wish to pursue claims for losses on TIC investments would be wise to act before more than six years has run from the date you purchased the investment. If six years has already passed you should consult knowledgeable counsel as they may still be opportunity to bring an action based on a theory that statutes of limitation and jurisdictional rules were tolled.

If you have experienced losses in TIC investments sponsored by Direct Invest, you may be able to recover all or a part of your losses through FINRA arbitration. To learn more about FINRA arbitration, see this.

Contact us for a free consultation to discuss your legal rights.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

QA3 Financial Broker David Theis Hit With $290,000 FINRA Award

March 2013-FINRA Case # 12-01157
A couple from Minnesota was awarded $290,000 against David Theis, a broker for QA3 Financial Corp., following an arbitration alleging failure to supervise, misrepresentation, negligence, breach of fiduciary duty, common law fraud and promissory estoppel.

The claimants alleged they were convinced to invest in the following investments based upon the false and misleading misrepresentations of the selling broker Theis:

During the course of the proceeding, QA3 filed for bankruptcy, staying the proceeding as to them. The case continued against broker David Theis.

Beware of Small Undercapitalized Broker Dealers

This case points out why investors should be wary when dealing with smaller independent broker dealers who may be thinly capitalized. If a broker makes a mistake like this in your account, you want to know that the firm has adequate resources to compensate you and not be forced into bankruptcy.

Before entrusting your nest egg to a small broker dealer you should obtain copies of their most recent financials and determine their net capital to assure yourself that your trust is well placed. You should also review the FINRA disclosures for the broker you are thinking of placing your account with. See this for more information on how to access the FINRA BrokerCheck website.

If you have questions about your brokerage account or stock market losses, contact us for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870