Written by 5:31 pm Blog, Current Investigations

Investor Alert: USEDC 2019 A Drilling Fund LP

Investor Alert USEDC 2019 A Drilling Fund LP, featured by top securities fraud attorneys, The White Law Group

USEDC 2019 A Drilling Fund LP, Investigating Potential Lawsuits 

Are you concerned about your investment in the USEDC 2019 A Drilling Fund LP? If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a complaint against the brokerage firm that sold you the investment. 

U.S. Energy is an exploration & production (E&P) operating company which designs and manages direct investment opportunities in energy for accredited investors and institutional partners, according to its website. 

The company often raises capital from investors like it did in 2019 with the offering USEDC 2019 A Drilling Fund LP. The total offering amount was purportedly $200,000,000. 

The trouble with alternative investment products 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 and bonds.  An additional risk inherent to USEDC 2019 A Drilling Fund LP is the general risk that comes with the energy market – a market that has seen enormous losses due to the market crisis amid the Covid-19 global pandemic. 

Further, Reg D private placements are typically sold by brokerage firms in exchange for a large up-front commission, usually between 7-10%. In the case of this particular offering, the sales commissions and fees were as follows: “Dealer-Manager Fee – 2%; Sales Commission – up to 7%; Due Diligence Fee – 0.5%; Marketing Expense Fee – 0.5%,” according to the filings. 

Filing a Complaint against your Brokerage Firm 

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

Reg D private placements is that the high sales commission brokers earn for selling such products.  Some brokers may push the product to unsuspecting investors who do not fully understand the risks of these types of products. 

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 liable for investment losses. 

The White Law Group is investigating securities claims involving broker dealers who may have unsuitably recommended high risk private placements to investors. 

To determine whether you may be able to recover investment losses in USEDC 2019 A Drilling Fund LP, 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 . The firm works on a contingency fee basis and may be able to represent you in a complaint against your brokerage firm. 

For more information on the firm, visit www.WhiteSecuritiesLaw.com. 

 

Tags: , , , , , , , , Last modified: September 14, 2021