U.S. Energy Genesis Drilling Program II Securities Investigation
The White Law Group announces a securities investigation involving U.S. Energy Genesis Drilling Program II.
- (1888PressRelease) October 04, 2017 - The White Law Group, LLC is investigating the liability brokerage firms may have for recommending U.S. Energy Genesis Drilling Program II to investors.
U.S. Energy Genesis Drilling Program II is a limited partnership launched in 2012. According to SEC filings, the total offering amount for Genesis was $44 million. It included more than $5 million going towards sales commissions to broker-dealers that sold the investment.
Oil and gas partnerships such as the Genesis Drilling Program are typically offered as private placements. Though returns can be exceedingly large, oil and gas partnerships are speculative ventures and investors must be able to afford the total loss of their investment. In addition, private placements are typically illiquid, hard to resell, and often have a long holding period.
Unfortunately, some brokers may have downplayed the risks associated with these limited partnerships. They have misled investors into thinking that they are “safe” investment products. The high sales commission brokers earned for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors. Your typical stock or mutual fund offers 1%-2% commission. The commission for limited partnerships like Genesis, are more than 10%.
If a broker misleads a client or makes unsuitable investment recommendations they can be liable for investment losses.
“In light of the decline in the overall health of the oil and gas market, many oil and gas LPs are suffering and some are on the brink of default, or worse yet, bankruptcy,” says D. Daxton White, Managing Partner of The White Law Group. “While such an outcome is extreme, it is not unforeseen and only highlights the unsuitability of these investments for most retail investors - particularly in large concentrations.”
To determine whether you may be able to recover investment losses incurred as a result of your purchase of U.S. Energy Genesis Drilling Program II, please contact The White Law Group at 1-888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm. The firm has offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.
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