Securities Investigation: MDS Energy Partners LP
Are you concerned about investment losses in MDS Energy Partners 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, MDS Energy Development LLC is centrally located in the heart of the Marcellus Shale fairway. MDS Energy Development and its affiliated companies have been tapping the Appalachian basin since 2006, sponsoring both public and private direct participation oil and gas investment partnerships. According to reports, in 2020 the company raised approximately $60 million in capital.
The company often raises money for investments through Reg D private placement offerings such as MDS Energy Partner LP. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up-front commission.
The trouble with alternative investment products, like MDS Energy Development’s offerings, is that they involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. Alternative investments are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products. An additional risk inherent to MDS offerings is the general risk that comes with the energy market – a market that has seen enormous ups and downs over the past two years due to Covid-19 global pandemic.
Broker dealers that sell alternative investments 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.
However, another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to 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.
Potential Lawsuits to Recover Financial Losses
Specifically, the White Law Group is investigating potential securities claims involving the following MDS offerings, among others:
MDS Energy Partners LP
MDS 2021-Marcellus Shale Development, LP
MDS 2020 – Marcellus Shale Development, LP
MDS 2019-Marcellus Shale Development, LP
MDS 2018-Marcellus Shale Development, LP
MDS 2017-Marcellus Shale Development, LP
To determine whether you may be able to recover investment losses incurred as a result of your purchase of MDS Energy Partners LP or another MDS Energy 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 Seattle, Washington. For more information on the firm, visit www.WhiteSecuritiesLaw.com.
To learn more about the investigation, please see:
MDS 2020 Marcellus Shale Development LP Securities Investigation
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