Our Client Loses a Significant Amount of Money in an Oil and Gas Private Placement
According to the FINRA statement of claim, a broker of the Texas-based brokerage firm first met with our client and convinced him to fly to Texas for the investment pitch. Our client then met with the CEO of the brokerage firm and pitched the investment to our client. The investment proceeds would allegedly by used to drill oil wells for oil production. The CEO of the brokerage firm promised great returns on the investment within six months. Our client was convinced and invested approximately $521,000 – almost all of his life savings.
The CEO of the brokerage firm also was managing partner of the company managing the private placement our client invested in and collected a management fee in addition to the upfront sales fee collected by his brokerage firm.
Over the course of four years, the CEO of the brokerage firm would give numerous excuses as to why the investment had not paid any money. Further, he was constantly asking our client to invest more money and to solicit other investors in the private placement. Our client never saw a penny from the private placement.
The CEO of the brokerage firm and the firm’s representatives made numerous misrepresentation and omissions of facts to induce our client to invest in the oil and gas private placement. Further, they solicited all of our client’s money in one investment. They then proceeded to squander the money and leave their investors holding the bill.
A FINRA arbitration panel awarded our client the full $521,000 initially invested in the private placement and an additional $1 million in punitive damages – the maximum allowed by Texas law. The award is a message sent to brokerage firms and brokers who defraud their customers. Our attorneys have recovered millions of dollars for our clients through FINRA arbitration awards, securities arbitration and settlements.
Contact Silver Law Group if You’ve Lost Money Investing in Private Placements or Reg D Offerings
If you’ve lost money investing in private placements and/or Reg D offerings with a broker or brokerage firm, we may be able to help you recover your losses. Contact our firm today to learn how we can try to recover your losses. We work on a contingency fee, meaning if we don’t recover money you owe us nothing. Our lawyers have extensive experience in claims against banks, accountants and financial advisors who aid or assist in fraud.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.