Investor Alert: Monongahela Coal Opportunity Fund, L.P. – Regulation D Investment

Have you experienced losses investing in Monongahela Coal Opportunity Fund, L.P.? If so, the securities attorneys at The White Law Group are investigating potential FINRA arbitration claims against broker-dealers that recommended this high-risk private placement offering.

About the Offering – Monongahela Coal Opportunity Fund, L.P.

Monongahela Coal Opportunity Fund, L.P., a Delaware limited partnership headquartered in Destin, Florida, filed a Form D with the Securities and Exchange Commission in December 2022. According to the filing, the company offered equity securities under Rule 506(b) of Regulation D, raising approximately $14.8 million from 150 investors with a minimum investment of $13,500.

The fund reportedly paid over $1.2 million in selling commissions and fees, including broker-dealer commissions, wholesaler expenses, marketing allowances, and due diligence costs. Broker-dealers involved in soliciting this investment included Emerson Equity LLC, Alexander Capital, Arkadios Capital, Coastal Equities, D.H. Hill Securities, Metric Financial, Titan Securities, and Whitehall-Parker Securities, among others.

Risks of Regulation D Offerings

Regulation D private placements such as Monongahela Coal Opportunity Fund, L.P. are typically marketed to accredited investors as alternative opportunities with the potential for higher returns. However, these investments often carry significant risk and lack transparency.

Common risks include:

• Illiquidity – There is typically no secondary market, and investors may be locked into the investment for an indefinite period.
• High Commissions & Fees – Broker-dealers may receive commissions and fees exceeding 10% of the offering, significantly impacting investor returns.
• Limited Public Information – These offerings are not subject to the same disclosure requirements as publicly traded securities, making due diligence challenging.
• Conflicts of Interest – Compensation to fund sponsors and affiliates may reduce proceeds available to investors.

Broker Due Diligence Duties

Broker-dealers who recommend private placements must conduct thorough due diligence to ensure the offering is suitable for their clients. This includes:

• Verifying the financial condition and business prospects of the issuer.
• Disclosing all material risks and conflicts of interest.
• Recommending the investment only if it aligns with the investor’s financial goals and risk tolerance.

If a brokerage firm fails in its due diligence or sells a speculative investment like Monongahela Coal Opportunity Fund, L.P. to an unsuitable investor, it may be liable for investment losses.

FINRA Arbitration vs. Class Action Lawsuits

Investors seeking to recover losses from private placements are typically required to file claims through FINRA arbitration, not class actions. Advantages of FINRA arbitration include:

• Faster resolution than civil court
• Individualized hearings and damage awards
• Lower litigation costs

Most brokerage firm customer agreements include mandatory arbitration clauses, making FINRA the primary forum for investor claims.

Free Consultation with a Securities Attorney

If you invested in this fund based on your financial advisor’s recommendation and are concerned about losses or lack of liquidity, The White Law Group may be able to help. Our attorneys have recovered millions for investors through FINRA arbitration and have handled over 800 claims nationwide.

For a free consultation, please call 888-637-5510 or visit www.whitesecuritieslaw.com.

FAQs – Monongahela Coal Opportunity Fund

1. What is Monongahela Coal Opportunity Fund, L.P.?
It is a private coal investment fund formed in 2022 that raised over $14.8 million through a Regulation D offering targeting accredited investors.

2. Who were the brokers selling this investment?
Brokers included firms such as Emerson Equity, Alexander Capital, Arkadios Capital, Coastal Equities, Titan Securities, and others.

3. Can I recover my investment if my broker didn’t disclose the risks?
Yes. If your broker failed to properly vet the fund or misrepresented its risks and fees, you may have grounds to file a FINRA arbitration claim for damages.