Articles Posted in Oil and Gas Investments

shutterstock_61142644-300x225The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products.  Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs).  Kayne Anderson MLP/Midstream Investment Company (NYSE: KYN) is a non-diversified, closed-end fund with an investment objective to obtain a high after-tax total return for its shareholders by investing at least 85% of our total assets in energy-related master limited partnerships and in other companies that operate assets used in the gathering, transporting, processing, storing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined petroleum products or coal.

Year to date Kayne Anderson MLP/Midstream Investment Company has returned a -57.97% return as of April 30, 2020.

As a background, MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow.  In 2013 banks earned fees of $890.3 million from MLP issuance.   Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.”  Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get.  According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…”  Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.”  At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

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shutterstock_140186524-300x298The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products.  Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs).  ClearBridge MLP and Midstream Fund, Inc. (NYSE: CEM) is a mutual fund that provides a single investment for accessing a portfolio of energy-related MLPs and midstream entities.

Year to date ClearBridge MLP and Midstream Fund has returned a -68.73% return as of April 30, 2020.  The price of the fund has fallen to $3.19.

As a background, MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow.  In 2013 banks earned fees of $890.3 million from MLP issuance.   Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.”  Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get.  According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…”  Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.”  At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

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shutterstock_145368937-300x225The investment attorneys with Gana Weinstein LLP are investigating and representing investors who were inappropriately recommended oil and gas and commodities related investments.  Investors may have potential legal remedies due to unsuitable recommendations by their broker to invest in this speculative and volatile area.

Mewbourne Oil Company claims on its website to have grown into one of the more prominent independent oil and natural gas producers in the Anadarko and Permian Basins of Texas, Oklahoma and New Mexico. The company focuses its efforts in the Anadarko and Permian Basins. Mewbourne clamis that the Anadarko and Permian Basins have produced more than 42 billion barrels of oil and 220 trillion cubic feet of natural gas and contain many of the largest oil and natural gas fields in the United States.

Mewbourne raises funds from investors through brokerage firms by selling interests in private placement partnerships.  Those offerings include:

Mewbourne Energy Partners 11-A, L.P.

Mewbourne Energy Partners 12-A, L.P.

Mewbourne Energy Partners 13-A, L.P.

Mewbourne Energy Partners 14-A, L.P.

Mewbourne Energy Partners 15-A, L.P.

Mewbourne Energy Partners 16-A, L.P.

Mewbourne Energy Partners 17-A, L.P.

Mewbourne Energy Partners 18-A, L.P.

Mewbourne Energy Partners 19-A, L.P.

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shutterstock_185582-300x225The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products.  Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs).  Goldman Sachs MLP Income Opportunities Fund (NYSE: GMZ) is a mutual fund that invests primarily in MLPs

In the past year the Goldman Sachs MLP Income Opportunities Fund has returned a -78% return as of April 30, 2020.

As a background, MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow.  In 2013 banks earned fees of $890.3 million from MLP issuance.   Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.”  Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get.  According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…”  Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.”  At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

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shutterstock_62862913-259x300According to BrokerCheck records financial advisor Michael Sims (Sims), formerly employed by Wedbush Securities Inc. (Wedbush Securities), has been subject to at least four customer complaints during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Sims has been accused by multiple customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs).  The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

In August 2019 a customer filed a complaint alleging that Sims violated the securities laws by engaging in, among other violations, excessive trading, inappropriate investments, mismanagement of account, excessive commissions and lack of supervision.  The claim alleges $250,000 and is currently pending.

In January 2019 a customer filed a complaint alleging that Sims violated the securities laws by engaging in, among other violations, unsuitability, breach of fiduciary duty of loyalty, negligence, negligent misrepresentation, breach of contract, material omissions and misrepresentations in connection with the sale of securities, fraud and deceit based on concealment and violations of Federal statutes, California laws and FINRA Rules and. The claim alleges $2.7 million and settled for $702,600.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

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shutterstock_157018310-300x200The investment attorneys at Gana Weinstein LLP are investigating various potentially unsuitable sales of oil and gas private placements.  These investments include those being underwritten and offered by David Lerner Associates, Inc. (David Lerner) – Energy 11 and Energy Resources 12.

Energy 11 was formed to enable investors to invest in oil and gas properties located onshore in the United States. The funds’ stated primary objectives are to acquire producing and non-producing oil and gas properties with development potential, and to enhance the value of those properties through drilling and other development activities.  The fund plans to after five to seven years to engage in a liquidity transaction in which they will sell properties and distribute the net sales proceeds to investors, merge with another entity or list common units on a national securities exchange.

Investors often do not understand the substantial risks of oil and gas private placements.  As reported in Reuters, when offerings by Atlas Energy LP, another issuer of oil and gas private placements were analyzed, investors only get to see 65-70% of their capital actually put to work on oil and gas projects.  Further, the returns on these projects had more in common with running profitable casinos than investments. Reuters found that slightly more than half of 43 private placements Atlas issued over the past three decades investors lost money or just broke even. While investors lost in more than half of the deals in 29 or 67% of those deals, Atlas actually out-performed their own investors.

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shutterstock_188631644-300x225According to BrokerCheck records financial advisor Michael Barnett (Barnett), employed by J.J.B. Hilliard, W.L. Lyons, LLC (JJB Hilliard), has been subject to six customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Barnett has been accused by a customer of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs).  The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The most recent claim was filed in June 2018 and alleges breach of contract, breach of fiduciary duty, violation of the Kentucky Consumer Protection Act, violation of Kentucky’s blue sky laws, and violation of the Illinois Consumer Fraud Act with respect to an over-concentration and losses in Breitburn Energy (BBEP) and that BBEP was unsuitable.  The claim alleges $42,791.95 in damages and is currently pending.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

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shutterstock_103681238-300x300According to BrokerCheck records financial advisor Jerry Michna (Michna), employed by Cetera Advisor Networks LLC (Cetera Advisor), has been subject to two customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Michna has been accused by a customer of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs).  The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The claim was filed in July 2018 and alleges various energy sector equities purchased in 2013 and 2014 were unsuitable causing $250,000 in damages.  The claim is currently pending.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

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shutterstock_12144202-300x200The securities attorneys at Gana Weinstein LLP have been investigating Wells Fargo Clearing Services, LLC (Wells Fargo) broker Bryan Musso (Musso). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Musso has been subject to six customer disputes, one of which is still pending. The majority of these disputes concern unsuitable investment recommendations in retirement plans and in oil and gas securities. The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

Most recently, in December 2017, Musso was subject to a customer dispute in which a customer alleged that Musso placed the customer in unsuitable oil and gas securities. This dispute is currently still pending.

In May 2011, a customer alleged that Musso made poor, unsuitable retirement plan recommendations and placed the customer into unsuitable investments. The case was settled at $445,220.

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shutterstock_38114566-300x199According to BrokerCheck records financial advisor Matthew Werthe (Werthe), employed by Raymond James Financial Services, Inc. (Raymond James), has been subject to three customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Werthe has been accused by a customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs).  The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The most recent claim was filed in April 2018 and alleges fraud, excessive trading, churning, unauthorized trading, Ohio consumer fraud, breach of fiduciary duty, unsuitability, breach of contract, negligence, and unjust enrichment.  The customer claimed $728,000 in damages and the claim is currently pending.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

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