Oil and Gas Investment Fraud | Finra Arbitration Attorney

The elderly and retirees are often victims of oil and gas investment fraud.  Such investments are often sold as safe for long term income, but have hidden problems.

Securities fraud attorney Daniel Bakondi puts clients first, and has recovered millions of dollars in compensation for investors in non-conventional investments like oil and gas energy projects and tenant in common “TIC” 1031 investments.

Such Oil and gas investments may be highly speculative and risky investments that are only suitable for investors willing to risk losing their entire principal.  However, because of the high commissions sometimes paid to brokers and financial advisors, many of these investments were sold to retirees, elderly, and unsophisticated investors who were not interested in speculating, and could not afford to lose their investment, constituting unsuitable investment recommendations.

Failure of oil and gas investments is often not caused to oil prices or market conditions, but the nature of the investment’s structure, the poor advice of the recommendation, and often stock broker fraud in recommending the particular investments.  All oil and gas investments are not alike.  Some do not have wells drilled yet. Others have unusual or improper payment structures.  Others are poorly managed, or allow the companies to change the relationship.

Oil and gas investment fraud may occur in many types of investments, including:

• Private Placements
• Master Limited Partnerships (MLPs)
• Stocks or bonds
• TICs

• Exchange-Traded Funds (ETFs)
• Exchange-Traded Notes (ETNs)

The Financial Industry Regulatory Authority which licenses all securities brokers and firms has warned about possible fraud in connection with such oil, gas and energy investments.  https://www.sec.gov/investor/alerts/ia_oilgas.pdf

Also see, Investment News: http://www.investmentnews.com/article/20160316/FREE/
160319960/wave-of-finra-arbitration-claims-expected-from-bad-bets-on-energy

For most investors, it is improper for these investments to constitute a significant percentage of an investor’s portfolio.  This is a failure to diversify and over concentration.  When compounded with a bad investment structure, problems may take years to emerge.

The statement of misleading facts, and the failure to disclose material facts constitutes securities fraud.  Material facts are anything the investor would have considered significant in their decision to make the investment.

There is currently a rise in defaults of oil and gas bonds resulting large in investment losses. 

Mr. Bakondi has helped investors recover millions of dollars for investments that are either reducing distributions, not paying distributions at all, or facing cash calls or other consequences.  It is often not the fault of management, but the broker and broker-dealer who failed to assess the risks, and sold an overpriced problematic investment without proper due diligence.

 

 

Daniel Bakondi Law Firm
danielbakondi@yahoo.com
Phone: (415) 450 – 0424
Fax: (415) 399 – 9608 

CLIENT TESTIMONIAL
“Best of the Best: I hired Daniel a year and a half ago to help with an investment gone wrong. I felt him to be an attorney who is committed to justice and takes pride in all his endeavors. He has the integrity and dedication to follow through and make the process as painless as possible. Daniel guided me to a conclusion in a situation that was very difficult to do. I feel he is the best of the best of young and up and coming attorneys in the city.”M.F.

CLIENT TESTIMONIAL
“Daniel Bakondi is an attorney who is devoted to his clients. He is knowledgeable, expedient, and meticulous about details. He is honest and provides his clients with a realistic evaluation of their expectations. He doesn’t waste your time. Daniel Bakondi is the attorney who will be in your corner all the way.” N.T.

Energy investments being investigated for possible fraud and or other loss liability:

  • Mountain V Oil and Gas Investment

  • Wedbush Investments

  • Ridgewood Energy Fund

  • Atlas Resource Partners

  • Mewbourn Oil Investments

  • Peabody Energy

  • Chesapeake Energy

  • Reef Oil and Gas Development Fund III

  • Linn Energy

  • Arch Coal

  • Layton ENergy Wharton LP

  • Swift Energy

  • Alpha Natural Resources

  • Sandridge Energy

  • Bradford Drilling and Exploration

  • Texas Energy Exoro

  • Alliance Resource Partners

  • Cloud Peak Energy

  • Pinacle Partners

  • Seadrill

  • Natural Resource Partners

  • Transocean

90 Oil and gas bankruptcies 2015-2016 according to Haynes Boone:

WBH ENERGY PARTNERS 

IVANHOE ENERGY INC. 

DUNE ENERGY INC. 

BPZ RESOURCES, INC. 

QUICKSILVER RESOURCES 

LARICINA ENERGY 

SHORELINE ENERGY

ERG RESOURCES, LLC 

AMERICAN EAGLE ENERGY CORP. 

DUER WAGNER OIL & GAS 

SUN RIVER ENERGY 

PRIMERA ENERGY 

SARATOGA RESOURCES (HARVEST OIL & GAS) 

SEFTON RESOURCES

ARABELLA PETROLEUM 

MILAGRO OIL & GAS, INC. 

SABINE OIL & GAS 

LUCA INTERNATIONAL GROUP LLC 

SAMCO OIL, LLC  

BLACK ELK ENERGY OFFSHORE 

WALDRON ENERGY

WINDFIRE RESOURCES 

COGI LIMITED PARTNERSHIP 

ARMADA OIL INC. 

CONTINENTAL EXPLORATION, LLC 

SAMSON RESOURCES CORPORATION 

MILLER ENERGY RESOURCES, INC.  

AIX ENERGY INC. 

RAAM GLOBAL ENERGY COMPANY 

REPUBLIC RESOURCES, LLC  

ESCALERA RESOURC CO. 

PARALLEL ENERGY LP  

HYPERION EXPLORATION CORP.

SPYGLASS RESOURCES CORP.

ENERGY & EXPLORATION PARTNERS, INC. 

TRANSCOASTAL CORPORATION 

CUBIC ENERGY, INC.  

MAGNUM HUNTER RESOURCES CORPORATION 

NEW GULF RESOURCES, LLC 

SWIFT ENERGY COMPANY 

AURORA OPERATING, LLC 

MOG PRODUCING, LP 

ANTERO ENERGY PARTNERS, LLC 

EMKEY RESOURCES, LLC 

OSAGE EXPLORATION AND DEVELOPMENT, INC. 

GINGER OIL COMPANY 

PRIMROSE LA SARA, LLC 

ARGENT ENERGY TRUST

ARGENT ENERGY (U.S.) HOLDINGS, INC.

D.J. SIMMONS, INC. 

RMR OPERATING, LLC

NEW SOURCE ENERGY PARTNERS, LP 

VENOCO, INC. 

EMERALD OIL, INC. 

WHISTLER ENERGY II, LLC 

TERRA ENERGY CORP.

 7711 OPERATING COMPANY, LLC 

POSTROCK ENERGY CORPORATION 

BLUFF CREEK PRODUCTION, LLC 

AZTEC OIL & GAS, INC. 

HYDROCARB ENERGY CORPORATION 

ENERGY XXI LTD 

GOODRICH PETROLEUM CORPORATION 

TRINITY RIVER RESOURCES, LP 

PALADIN ENERGY CORPORATION 

MOSAIC ENERGY LTD

ULTRA PETROLEUM CORP. 

PACIFIC EXPLORATION & PRODUCTION CORP.

MIDSTATES PETROLEUM COMPANY, INC

CALERA GAS, LLC
AURORA GAS LLC
ANTERRA ENERGY INC.

CHAPARRAL ENERGY, INC. KINWEST 2008 ENERGY INC.

LINN ENERGY, LLC 

BERRY PETROLEUM COMPANY, LLC 

PENN VIRGINIA CORPORATION BREITBURN OPERATING LP
SANDRIDGE ENERGY, INC.
CONNACHER OIL AND GAS LIMITED

RICOCHET ENERGY, INC. 

INTERVENTION ENERGY HOLDINGS, LLC 

LINC USA GP 

ENDURANCE ENERGY LTD.

NORTHPOINT RESOURCES LTD.

WARREN RESOURCES, INC.

TAUREN EXPLORATION, INC. 

LGX OIL + GAS INC.

CORE RESOURCE MANAGEMENT, INC.

MAXUS ENERGY CORPORATION
TRIANGLE USA PETROLEUM CORPORATION 

ATINUM MIDCON I, LLC 

III EXPLORATION II LP
ATLAS RESOURCE PARTNERS, L.P.

HALCÓN RESOURCES CORPORATION

RINCON ISLAND LIMITED PARTNERSHIP BENNU TITAN LLC
NORTHSTAR OFFSHORE GROUP LLC

 

(c) Copyright 2017 Daniel Bakondi

Please note that you are not considered a client until a formal agreement to take on your matter is entered into and No attorney-client relationship is created through this website.  You may not rely in any way the attorney and nothing constitutes legal advice nor legal opinion uness expressly stated.  Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately. Attorney licensed to practice in California and California jurisdiction matters only, engages in FINRA securities matters nationwide, and may practice pro hoc vice or engage associate counsel for litigation matters nationwide.

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