Investor Alert: Drake Energy Opportunity Fund, L.P. – Regulation D Investment Loss Investigation

Are you concerned about your investment in Drake Energy Opportunity Fund, L.P.? The White Law Group is investigating potential claims on behalf of investors who purchased interests in this high-risk private placement offering.

About the Offering – Drake Energy Opportunity Fund, L.P.

Drake Energy Opportunity Fund, L.P., a Delaware limited partnership, reportedly filed a Form D notice of exempt offering with the SEC in 2021 to raise capital through a Regulation D offering. The Fund reportedly raised over $12.2 million from 121 investors, with a minimum investment of $10,000, according to the Form D.

Securities were sold by multiple broker-dealers, including Arkadios Capital, Emerson Equity, Coastal Equities, and others. The offering reportedly paid over $858,000 in sales commissions and related fees, including a $543,513 sales commission, a $120,111 managing broker-dealer fee, and additional marketing and wholesale expenses.

Understanding the Risks of Regulation D Offerings

Reg D private placements like Drake Energy Opportunity Fund, L.P. are often marketed as alternative investments offering high yields or non-correlated returns. However, these securities are speculative and carry elevated risk—particularly for conservative investors or retirees.

• Illiquidity: No secondary market for resale—investors may be locked in indefinitely.
• High Commissions & Fees: Broker incentives can exceed 10% of the offering, impacting potential returns.
• Lack of Transparency: Limited public financial data makes it difficult to assess investment performance.
• Manager Conflicts of Interest: Payments to sponsors and affiliates can reduce net investor proceeds.

Broker Due Diligence Obligations

FINRA-registered broker-dealers are obligated to conduct reasonable due diligence on private placements before offering them to clients. They must ensure:

• The investment is suitable based on an investor’s risk profile and objectives.
• Material risks, conflicts of interest, and fees are properly disclosed.
• The financial condition and track record of the issuer are evaluated.

Failure to do so may be grounds for a claim of negligence, unsuitable investment recommendations, or failure to supervise.

FINRA Arbitration vs. Class Action Lawsuits

In most cases, investors pursuing recovery for private placement losses are required to proceed through FINRA arbitration, not a class action. Benefits of arbitration include:

• Quicker resolution compared to courts
• Potential for individualized damage awards
• Less costly legal process

Most brokerage agreements include mandatory FINRA arbitration clauses, making this the preferred and sometimes only legal forum for recourse.

Free Consultation – Recover Your Losses

If you invested in Drake Energy Opportunity Fund, L.P. at the recommendation of your financial advisor and are concerned about losses or lack of liquidity, The White Law Group may be able to help. We have successfully handled over 800 FINRA arbitration cases nationwide.

For a free consultation with a securities attorney, call 888-637-5510 or visit www.whitesecuritieslaw.com.

Frequently Asked Questions – Drake Energy Opportunity Fund

1. What is Drake Energy Opportunity Fund, L.P.?
It is a 2021 Regulation D oil and gas investment filed with the SEC, raising over $12.2 million from 121 investors.

2. Can I sell my interest in the fund?
No. These investments are highly illiquid and are not traded on any public exchange.

3. What if my broker didn’t explain the risks?
You may have a claim for unsuitable investment advice or misrepresentation. These claims are typically resolved through FINRA arbitration.