Investor Alert: Reef 2011 Private Drilling Fund LP

Reef 2011 Private Drilling Fund LP Investment Losses

Have you suffered investment losses in Reef 2011 Private Drilling Fund LP? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Reef Oil and Gas L.P. was founded in 1987. According to its website, the company strives to develop, exploit, and produce oil and natural gas properties and operate wells drilled. The company is currently based in Richardson, Texas and has offered numerous public and private partnerships over the years.

The trouble with alternative investment products, like Reef 2011 Private Drilling Fund LP, 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.  An additional risk inherent to Reef Oil and Gas  offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.

Upon information and belief, distributions in the Reef 2011 Private Drilling Fund have dropped dramatically and given the current price of oil and the general way these oil and gas LPs perform historically, it appears unlikely that the LP will resume paying substantial distributions in the future.

The White Law Group is Investigating

The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like Reef 2011 Private Drilling Fund LP.

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.

However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright 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.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Reef 2011 Private Drilling Fund LP or another Reef Oil and Gas private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.

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.