Silver Law Group continues to investigate investments in oil, gas, and energy companies made by clients through master limited partnerships (“MLPs”) at the recommendation of their brokers. As a result of high oil prices over the past few years, there has been a heightened interest in investments in oil and gas using MLPs. Now with the drop in the price of oil and gas, investors who may have been looking for conservative investments without significant risk are facing substantial drops in their portfolios. Investors are further discovering that conflicts of interest between the investment bank, trading desk, and individual advisor influenced stockbroker’s recommendations.
These alternative investments in oil and gas typical take the form of Master Limited Partnerships (“MLPs”). These types of alternative investments have historically been extremely risky investments that demand a careful suitability analysis and due diligence by financial processionals before they are recommended to the public. More often than not, broker-dealers and brokers are enamored with these types of investments because they, like other alternative investments, also tend to pay high commissions.
In a recent Financial Industry Regulatory Authority (“FINRA”) arbitration proceeding, RBC Capital Markets and its broker Bruce Cameron were ordered to pay a former client $723,000 for losses sustained from investing in MLPs. The claims included overconcentration in unsuitable investments (MLPs), negligence, and failure to supervise. Cameron was registered with the RBC Massachusetts office.
The client was elderly and her account suffered losses because it was overconcentrated in oil and gas MLPs including:
Brietburn Energy Partners, LP;
Enable Midstream Partners, LP;
Enterprise Products Partners, LP;
Ferrellgas Partners,LP;
Gramercy Property Trust;
JP Energy Partners, LP;
Mid Con Energy Partners, LP;
Southcross Energy Partners, LP;
Summit Midstream Partners, LP;
Tallgrass Energy Partners, LP;
CrossAmerica Partners, LP; and
Enlink Midstream Partners, LP.
If you invested in an Oil and Gas investment and believe you have been misled by a trusted financial professional, you may be able to file a claim to recover your losses through FINRA arbitration. Silver Law Group is a nationally-recognized securities law firm headquartered in South Florida, with satellite offices in New York and Washington, D.C., representing investors worldwide with their claims for losses due to financial misconduct and consumer fraud. Our attorneys have Martindale-Hubbell® Peer Review Ratings™ of “AV” Preeminent for achieving the highest ethical and legal standards. The firm has successfully recovered multi-million dollar awards for its clients through securities arbitration and the courts. To contact Scott L. Silver to discuss your legal matter, call toll-free (800) 975-4345 or e-mail him at SSilver@silverlaw.com.