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Written by 4:01 pm Blog, Current Investigations

Investigation of D & L Energy 2010-A LTD

D & L Energy 2010-A LTD

Recovery of Investment Losses in D & L Energy 2010-A LTD

Have you suffered losses investing in D & L Energy 2010-A LTD? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

On April 16, 2013, D&L Energy, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Ohio.

D&L first gained media attention when its wastewater disposal wells were tied to a series of earthquakes in 2011 and 2012. The bankruptcy occurred in 2013 after the Ohio Department of Natural Resources (ODNR) revoked all of the company’s operating permits following revelations that the company had illegally disposed of wastewater into a Mahoning River tributary.

According to court papers, the US Bankruptcy Court gave an order approving the sale of substantially all the assets of D&L Energy, Inc. on October 30, 2014. The debtor has been authorized to sell substantially all its assets to Resource Land Holdings, LLC, the stalking horse bidder for a purchase price of $7.65 million in cash. The debtor’s assets include account receivables, ownership interests, trademarks and trade names. The debtor did not receive any other competing bids for the purchase of its assets and therefore Resource Land Holdings, LLC emerged as the winning bidder.

The Trouble with Private Placements

The trouble with alternative investment products, like D&L Energy, LP and D & L Energy 2010-A LTD, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements including the following:

D & L Energy 2007-A LTD
D & L Energy 2008-A LTD
D & L Energy 2009-A LTD
D & L Energy 2010-A LTD
D & L Energy 2011-A LTD

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

Another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products  can provide brokers with an enormous incentive to push the product to unsuspecting investors. They tend to misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and 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 found liable for investment losses in a FINRA arbitration claim.

Free Consultation

You may be able to recover investment losses incurred as a result of your purchase of D&L Energy offerings. Please contact The White Law Group at 1-888-637-5510 for a free consultation.

For more information on the investigation see Investor Alert: D&L Energy, LP.

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. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.

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