Investigating Potential Claims – MDS Energy Public 2013 Program
Have you suffered losses investing in MDS Energy Public 2013 Program? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA Arbitration.
MDS Energy Public 2013 Program is a series of up to three limited partnerships planning to drill primarily natural gas development wells, according to its prospectus. The first partnership in the program was the MDS Energy Public 2013-A LP, followed by MDS Energy Public 2014-A LP. MDS Energy Public 2014-B LP was the final offering.
The limited partnerships were managed by MDS Energy Development, LLC of Kittanning, Pennsylvania.
High Degree of Risk
According to the prospectus, these securities are speculative and involve a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment.
Risk Factors according to the Prospectus:
| · | The partnership’s drilling operations involve the possibility of a total or partial loss of your investment because the partnership may drill nonproductive wells (“dry holes”) or wells that are productive, but do not produce enough revenue to return the investment made. |
| · | The partnership’s revenues are directly related to its ability to market the natural gas and oil produced from the wells it drills and natural gas and oil prices are volatile. If natural gas and oil prices decrease, your investment return will decrease. |
| · | All of the partnership’s wells will be drilled vertically to the Marcellus Shale geological formation in western Pennsylvania, which will provide no geological diversification of risk, and will be classified as natural gas wells. |
| · | Your partnership distributions will be a return of capital until you have received 100% of your investment. |
| · | Cash distributions to you from the partnership every month are not guaranteed. |
| · | You will have unlimited joint and several liability for partnership obligations if you choose to invest as an investor general partner until you are converted to a limited partner. |
| · | A lack of liquidity or a public market for the units makes it extremely difficult for you to sell your units. |
| · | There is a lack of conflict of interest resolution procedures between the managing general partner and you and the other investors. |
| · | You must rely totally on the managing general partner and its affiliates to manage the partnership and its business. |
| · | Substantial fees will be paid by the partnership to the managing general partner and its affiliates. |
| · | You and the managing general partner will share in costs disproportionately to your sharing of revenues. |
| · | Proposed changes in the federal income tax laws, if enacted, would reduce your tax benefits from an investment in the partnership. |
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended the following MDS Energy Partners investments:
MDS Energy Public 2013-A LP
MDS Energy Public 2014-A LP
MDS Energy Public 2014-B LP
Due to the high degree of risk associated with oil and gas partnerships, like MDS Energy Public 2013 Program, they are generally more appropriate for sophisticated and institutional investors. Unfortunately, because of the high commissions these products generally pay to brokers, they are often sold to unsophisticated and retired investors.
Brokerage firms have a fiduciary duty to perform adequate due diligence. They must determine if an investment is appropriate for a particular client given the client’s age, net-worth, financial objectives, investment experiences, financial needs, and risk tolerance. If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
Free Consultation
If you would like to speak with a securities attorney regarding your ability to recover investment losses in MDS Energy Public 2013 Program, please call 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 Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.
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