Investor Alert: Waveland Resource Partners II LP

Waveland Resource Partners II LP Investment Losses

Have you suffered investment losses in Waveland Resource Partners II 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.

According to their website, Waveland invests in oil and gas exploration and development throughout the Mid-Continent and Permian Basin regions of the United States alongside many of the largest and most active exploration and production companies.

Waveland often raises money for investments through Reg D private placement offerings like the company did for Waveland Resource Partners II LP.  These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

Trouble with Alternative Investments

The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas private placements like Waveland Resource Partners II LP.

The trouble with alternative investment products, like Waveland Resource Partners II 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 Waveland 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.

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.

Risks of Reg D Private Placements

Unfortunately, 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.  Often the broker will focus on the income potential and tax benefits while downplaying the risks.

For example, Waveland’s own website has this to say: “Private placements Investments involve a high degree of risk and should be undertaken only by persons who have the sophistication and financial resources to assume these 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.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Waveland Resource Partners II LP or another Waveland offering, 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.