Ashburn Creek Fault LP Investigation – What Investors Should Know
The White Law Group is investigating potential claims involving Ashburn Creek Fault LP, a Tennessee-based oil and gas limited partnership that filed a Form D notice of exempt offering of securities with the Securities and Exchange Commission (SEC).
According to the filing, Ashburn Creek Fault LP was formed in 2020 and is headquartered in Knoxville, Tennessee. The partnership offered approximately $4.35 million in equity securities under Regulation D, Rule 506(b), which provides an exemption from SEC registration for certain private placement investments.
Details of the Offering
- Issuer: Ashburn Creek Fault LP
- Industry: Oil & Gas
- Total Offering Amount: $4,350,000 (now fully sold)
- Number of Investors: 55
- Minimum Investment: $14,000
- Sales Compensation: Approximately $398,795 in commissions were paid to brokerage firms and financial advisors for selling the offering.
Broker-dealers involved in the sales include Dempsey Lord Smith, LLC, Capital Investment Group, Inc., Alexander Capital, L.P., and JRL Capital Corporation, among others.
Risks of Oil & Gas Private Placements
Private placements like Ashburn Creek Fault LP are often sold to retail investors as opportunities for diversification and high returns. However, these investments can be risky, complex, and illiquid. Common risks include:
- High commissions and fees – Often 7–10% or more, creating conflicts of interest.
- Illiquidity – Investors may be unable to sell their shares if they need access to their money.
- Speculative operations – Oil and gas programs often depend on drilling success and commodity price swings.
- Lack of transparency – Private placements are exempt from the same disclosure requirements as publicly traded investments.
Because of these risks, private placements are generally unsuitable for many retail investors, particularly retirees and those with conservative investment goals.
Potential Liability of Brokerage Firms
Brokerage firms that sold Ashburn Creek Fault LP were required to perform due diligence on the investment and ensure that recommendations were suitable for each client. If firms failed to adequately vet the investment or misrepresented the risks, they may be liable for investment losses through FINRA arbitration.
Recovering Investment Losses
If you invested in Ashburn Creek Fault LP at the recommendation of your financial advisor, you may be able to recover your losses. The White Law Group has successfully represented thousands of investors in claims against brokerage firms for improper sales of private placement investments.
Free Consultation
If you are concerned about your investment in Ashburn Creek Fault LP, call The White Law Group at (888) 637-5510 for a free consultation with a securities attorney.
FAQs – Ashburn Creek Fault LP
What is Ashburn Creek Fault LP?
Ashburn Creek Fault LP is a Tennessee oil and gas limited partnership formed in 2020. It raised $4.35 million through a private placement offering under SEC Regulation D.
Why are oil and gas private placements risky?
These investments are speculative, often highly leveraged, and subject to commodity price volatility. They are also illiquid and may pay high sales commissions to brokers.
Can I sell my Ashburn Creek Fault LP investment?
Probably not. Private placement securities are typically illiquid and cannot be easily resold.
