Midland Mesa Minerals LLC Investor Lawsuit
Have you suffered investment losses in Midland Mesa Minerals LLC or another Montego Minerals drilling program? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.
Overview of Montego Minerals
According to its website, Montego Minerals acquires mineral and royalty interests for properties that have existing leases with energy companies. The operators drilling wells on the property pay all drilling and operating costs. The fund sponsor, Montego Asset Management, collects royalty payments from the operators and distributes the funds monthly to investors.
Montego raises capital through private placement offerings, including Midland Mesa Minerals LLC. These investments are typically sold to accredited investors through broker-dealers nationwide. According to SEC filings, the company purportedly filed a Form D to raise $12 million from investors.
Risks of Oil and Gas Private Placements
Investments in oil and gas private placements carry substantial risks. These programs are often:
- Illiquid – There is no public market to sell your shares.
- Lightly regulated – Most are exempt from SEC registration, reducing transparency.
- Fee-heavy – Investors may pay commissions 3–4 times higher than mutual funds or traditional securities.
- Highly speculative – Success depends on oil prices, drilling outcomes, and operator performance.
If energy prices fall or operations underperform, the partnership could default or file for bankruptcy. Unfortunately, many retail investors are not made fully aware of these risks before investing.
Investor Lawsuits and Broker Liability
The White Law Group is currently investigating broker-dealer liability in the sale of Montego Mineral offerings and similar energy investments.
Our firm has represented dozens of investors who were sold oil and gas offerings by financial advisors who may have:
- Misrepresented the risk level of the investments,
- Failed to perform adequate due diligence on the products,
- Recommended unsuitable investments based on the client’s risk tolerance, net worth, and investment goals.
Under FINRA Rule 2111 (Suitability) and Rule 3110 (Supervision), brokerage firms have a duty to ensure that investment recommendations are appropriate and that sales practices are compliant with industry standards.
Midland Mesa Minerals LLC
Midland Mesa Minerals LLC is one of several high-risk drilling programs launched by Montego Minerals. Like earlier offerings, this fund likely involved:
- Significant upfront fees,
- Complex tax structures,
- Limited secondary market options, and
- High sensitivity to oil price fluctuations.
If your financial advisor did not adequately explain these risks, or if your investment was unsuitable for your profile, you may have grounds for a FINRA arbitration claim.
Recovery of Midland Mesa Minerals Investment Losses
The White Law Group is currently investigating potential securities claims involving broker dealers who may have improperly recommended Midland Mesa Minerals LLC to investors.
If you invested in any of these offerings and have experienced losses, you may be eligible to recover damages through FINRA arbitration.
Free Consultation with a Securities Attorney
To speak with a securities fraud attorney about a possible Midland Mesa Minerals LLC lawsuit, please contact The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in FINRA arbitration claims nationwide against broker-dealers for fraud, misrepresentation, and unsuitable investment recommendations.
Visit our homepage to learn more:
www.whitesecuritieslaw.com
Frequently Asked Questions (FAQ)
Why are Montego Minerals investments considered high-risk?
Montego Minerals programs, like many oil and gas limited partnerships, are considered speculative and illiquid investments. They often involve:
- High upfront costs and commissions,
- Limited secondary market liquidity,
- Exposure to commodity price fluctuations,
- Minimal regulatory oversight due to SEC registration exemptions.
These risks make them unsuitable for many retail investors, especially retirees or conservative investors seeking income or capital preservation.
How do I know if my investment was unsuitable?
An investment may be unsuitable if it does not align with your:
- Risk tolerance,
- Financial situation,
- Investment objectives,
- Need for liquidity.
If your broker recommended this offering without fully explaining the risks or ensuring it matched your investor profile, you may have a claim for unsuitability under FINRA rules.
Can I recover losses from my Midland Mesa Minerals LLC investment?
Possibly. If your broker or financial advisor misrepresented the investment, failed to conduct proper due diligence, or recommended this DST, you may be able to recover your losses through a FINRA arbitration claim. Each case is different, so it’s best to consult with a securities attorney.
Last modified: June 12, 2025
