Investor Lawsuit Investigation : Empire Diversified Energy Inc.
The White Law Group is investigating potential securities claims involving the sale of private placement investments in Empire Diversified Energy Inc. If you invested in this offering through a broker-dealer recommendation, you may have claims to recover losses through FINRA arbitration.
SEC Filing Information – Empire Diversified Energy Inc.
According to Form D filed with the SEC, Empire Diversified Energy Inc., a Delaware corporation based in Fort Lauderdale, Florida, initiated a Regulation D offering on December 27, 2021. The offering was made pursuant to Rule 506(b) of Regulation D and included equity securities and options/warrants.
Offering Details & Use of Proceeds
Empire Diversified Energy Inc. reportedly disclosed a total offering amount of $15 million, with $850,000 sold to 9 investors as of the filing date.
The issuer reportedly intended to pay up to $1.5 million in placement agent fees, based on a 10% commission structure. Noble Capital Markets, Inc. (CRD#: 15768) was listed as the placement agent for the offering.
High-Risk Nature of Private Placements
Private placement offerings like this one are often marketed as alternative investment opportunities, yet they can carry substantial risk. Reg D offerings are generally illiquid, speculative, and high-commission investments, frequently unsuitable for retail investors.
- Illiquidity: Investors may be unable to exit before maturity.
- Lack of transparency: Limited financial reporting or independent valuation.
- Concentration: Overconcentration in a single investment or sector.
- High fees: Commissions and placement fees can reduce investor returns.
Broker Responsibilities & Investor Claims
Broker-dealers recommending private placements must ensure the investment is suitable based on each client’s risk tolerance, investment objectives, and financial profile. Firms are also obligated to:
- Conduct due diligence on the issuer
- Disclose all material risks
- Supervise their representatives’ sales practices
If a financial advisor fails in these duties, investors may have grounds for recovery through FINRA arbitration.
Legal Options: Arbitration vs. Class Action
Investors seeking recovery are generally required to resolve disputes through FINRA arbitration, rather than class action. Most brokerage account agreements include a pre-dispute arbitration clause.
- A quicker, more streamlined process
- Lower litigation costs
- Binding outcomes
Discuss Your Recovery Options with a Securities Attorney
If you invested in Empire Diversified Energy Inc. based on your broker’s recommendation and are experiencing problems such as illiquidity or financial loss, you may be entitled to compensation. The securities attorneys at The White Law Group have successfully recovered millions for investors nationwide.
For a free consultation, call 888-637-5510 or visit www.whitesecuritieslaw.com.
About The White Law Group
The White Law Group is a national securities arbitration and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm handles claims on behalf of investors throughout the U.S. against brokerage firms for fraud, unsuitable investments, and failure to supervise.
Frequently Asked Questions : Empire Diversified Energy Inc.
1. What is Empire Diversified Energy Inc.?
It is a Delaware corporation that offered equity and warrants through a 506(b) private placement filed with the SEC in 2021.
2. How much was raised in the offering?
As of the filing, the issuer had sold $850,000 of the $15 million offering to 9 investors.
3. Can investors recover losses from this Reg D investment?
If a broker misrepresented the risks or failed to perform adequate due diligence, investors may be able to file a FINRA arbitration claim to recover their losses.
Last modified: August 5, 2025
