Written by 9:31 pm Blog, Current Investigations

MDS 2014-Marcellus Shale Development LP Investment Losses

Are you concerned about investment losses in MDS 2014-Marcellus Shale Development LP? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to their website, MDS Energy Development LLC is centrally located in the heart of the Marcellus Shale fairway. MDS Energy Development and its affiliated companies have been tapping the Appalachian basin since 2006, sponsoring both public and private direct participation oil and gas investment partnerships.

The company often raises money for investments through Reg D private placement offerings like the company did for MDS 2014-Marcellus Shale Development LP.  These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission.

The trouble with alternative investment products, like MDS 2014-Marcellus Shale Development LP, is that they involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. Alternative investments are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products.  An additional risk inherent to Ridgewood offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

However, another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of products.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of MDS 2014-Marcellus Shale Development LP or another MDS Energy Partners private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

 

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