Category Archives: Oil and Gas Partnerships

Want to Sell Your Alternative Investments? Want to Recover Losses on REIT Investments?

April 2018

Investors owning non publicly traded alternative investments, such as real estate investment trusts (REITs) and oil and gas partnerships may not have been aware of the meaning of illiquid when  the investments were recommended to them by a financial advisor or stockbroker.

These  investments generated high commissions for the firm and broker and were typically sold to unsuspecting with the promise of a steady dependable stream of income, a promise of steady or increasing value and with little discussion of the fact that the investment cannot be sold on any conventional exchange should a need for cash arise.

Many investors made the decision to purchase these investments without a clear understanding of the risks associated with them. Many purchased them not aware that they are illiquid.

If you have watched the value of your investments in alternative investments decline and wonder how you can get out of these investments that cannot be sold on any conventional exchange, you may be pleased to know that there are several secondary markets that have developed over the years which provide investors the opportunity to dispose of these investments.

Here are two popular market makers. Each has its own set of procedures for buying and selling alternative investments. Visit their sites for details.

Central Trade & Transfer

www.CTTAuctions.com

CFX Markets

www.CFXtrading.com

Recent (April 2018)  trading ranges quoted by CTT Auctions  for some of the most popular non publicly traded alternative investments.

ALTERNATIVE  INVESTMENT                    Recent Price

ARC New York City REIT                                 $13.00-13.28

Black Creek Diversified Prop.                      $6.85-7.00
Business Dev. Corp. (BDCA)                         $6.50-6.75
Carter Validus Mission Critical REIT       $5.50-5.75
CNL Healthcare                                                    $8.61-8.90
Cole Credit Prop Tr. IV                                      $7.65-8.00
Cole Credit V                                                          $18.55-18.85
Corporate Prop 17                                              $9.50-9.65

Corporate Prop 18                                             $7.95-8.17

Healthcare Trust (ARC II)                                $13.96-14.01

Highland REIT (InvenTrust spinoff)          $.21-.22
Hines Global REIT                                               $7.85-8.00

HMS Income Fund                                               $7.20-7.35
Inven Trust (Inland American)                      $1.84-1.90
KBS Legacy Prnrs Apt REIT                           $3.65-3.80
KBS II                                                                           $4.13-4.05

KBS REIT III                                                             $9.85-9.95
KBS Strategic Opp REIT II                             $7.75-8.00

Lightstone Value Plus REIT V                      $5.80-6.01
Northstar Healthcare Income                     $6.50-6.71
Phillip Edison Grocery Center REIT I      $9.25-9.50

Strategic Realty Trust (TNP)                         $4.50-4.55
United Development Fund III                      $2.50-2.65

HAVE YOU SUFFERED A LOSS ON ALTERNATIVE INVESTMENTS?

If you have losses on your alternative investments, you may be able to recover damages from the brokerage firm that recommended the investments to you. Call for a no obligation consultation with an experienced securities attorney to learn about you options.

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

 

How to Recover Losses on Reef Oil and Gas Fund Investments

April 2018-Richardson, TX

Reef Securities Inc. and its owner and president Frank Mauceli were sanctioned by FINRA on April 11, 2018, for failing to timely notify investors in an Oil and Gas Drilling and Income Fund L.P. , sold in 2014, of revisions to an offering prospectus and of the investors’ rights to rescind his or her investment.

In addition Reef was sanctioned for advertising violations in another Reef offering. According to the FINRA sanction the subject advertising communications:

“failed to provide a balanced presentation or a sound basis for evaluating the investments being promoted, contained misleading and unwarranted claims, and, in addition, made prohibited profit projections.”

FINRA noted the following as being inconsistent and unwarranted statements in the subject advertising materials:

  • a 3 year profit range of 45%-75% in one communication vs a 35-45% range in another communication
  • a divest period of 24-36 months in one communication vs. 3-5 years in another communication
  • prohibited investor performance projections such as “Total Anticipated Profit 45%-75%”

Reef Securities was censured and fined $40,000. Mauceli was fined $5,000 and suspended 4 months from association from any FINRA member firm in all principal capacities. FINRA AWC2015043469001

Reef Oil and Gas, an affiliate of Reef Securities, engages in the developing, exploiting and producing oil and natural gas.

A partial list of recent Reef oil and gas offerings we have been investigating:

  • Reef 2015 Oil & Gas Opportunity Fund
  • Reef 2015 Income Fund
  • Reef Bakken Bear Cat Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2010 Drilling Fund
  • Reef 2009 Drilling Fund
  • Reef 2007-2009 Drilling Program
  • Reef Oil & Gas Drilling & Income Fund
  • Reef Oil & Gas Income & Development Fund III
  • Reef Oil & Gas Income & Development Fund IV

Reef Oil and Gas investments were sold by many brokerage firms, including Reef Securities. These investments can be unsuitable for certain individuals, including the elderly and retired. If you have losses on an investment in one of the Reef Oil and Gas offerings, call for a no charge consultation to discuss your options.

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

Losses on EV Energy Partners ? You May be Entitled to Damages.

April 2, 2018

Houston based EV Energy Partners, L P (EVEP) , an oil and gas master limited partnership (MLP) has filed for Chapter 11 bankruptcy protection.

According to a press release EVEP listed between $50-$100 million in assets and liabilities between $500 million and $1 billion. EVEP has oil & gas properties in the Barnett Shale, San Juan Basin, Appalachian Basin, Permian Basin and Karnes County, Texas.

If the broker who recommended an investment in  EV Energy Partners misrepresented the risks associated with the investment  or if the broker did not have reasonable basis to make such a recommendation, losses may be recoverable from the firm employing the broker. Call for a no charge consultation to discuss your options.

Chart of EV Energy Partners

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

Walter M. Stucker-Former UBS Stockbroker-Subject of Customer Suit Over Oil & Gas Investments-Fort Worth, TX

March 2018- Fort Worth, Texas

The FINRA records of Walter M. Stucker , a stockbroker who until 5/2017 was  employed by UBS Financial Services , disclose  a currently pending customer dispute involving energy securities.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In December 2017 a customer of Stucker’s prior employer, UBS Financial Services, brought a complaint alleging misrepresentation, suitability issues and over concentration in oil and gas limited partnerships. The customer seeks damages of $632,907.

Stucker was employed by UBS Financial Services  from 4/2008-5/2017. He has been employed by Wells Fargo Clearing Services since 5/2017.

If you have questions about an account handled by Walter M. Stucker contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.

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

National Toll Free: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Dennis Van Patter-Former VSR Financial Services Broker-Subject of Customer Suits Over REITs-Plano, Texas

March  2018-Plano, Texas

According to public records former VSR Financial Services broker Dennis Van Patter discloses a prior final regulatory event, 7 prior customer disputes that are final and 3 pending customer disputes.

Five of the prior customer disputes were brought by Van Patter’s customers while he was employed by VSR Financial Services and allege damages related to investments in real estate investment trusts (REITs), oil and gas, equipment leasing and promissory notes (alternative investments). Settlements paid by VSR Financial in those five  cases are $40,000, $215,000, $11,250, $50,000 and $15,000.

The three pending cases against Van Patter are by customers of VSR Financial and relate to alternative investments such as REITs, oil and gas and equipment leasing. Damages sought in the two of the pending cases are not stated. Damages sought in the third case are $1,074,858.

In November of 2015 FINRA suspended Van Patter for 45 days and fined him $10,000. Without admitting or denying the findings, Van Patter consented to the entry of findings that his recommendation that a retired customer invest in alternative investments was not suitable in light of the customer’s investment objectives and risk tolerance. The findings stated that Van Patter recommended that the customer invest $1.6 million in alternative investments such as REITs, note programs, oil and gas drilling partnerships and other private placements. As a result of Van Patter’s recommendations, the customer had approximately 52% of his liquid net worth concentrated in high risk alternative investments. FINRA Case 2013036647401. 

See this for prior posts on Dennis Van Patter. 

VSR Financial’s Prior Issues with Alternative Investments

VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments. In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers. During the summer of 2016, VSR Financial announced that they were winding down their brokerage business and transferring accounts and brokers to an affiliated entity Summit Brokerage Services.

See this for prior posts on VSR Financial Services.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. It may also include art, wine, antiques, coins or stamps. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

Van Patter was employed by VSR FInancial  Services from 10/1997-7/2016. He is not currently registered with any broker dealer.

If you have losses in an account in an account handled by Dennis Van Patter or  another VSR Financial Services broker, contact us for a no charge consultation to learn how you may be able to recover damages for those losses.

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