North Texas Energy Inc.: Help for Investors
The White Law Group is investigating potential securities lawsuits involving broker dealers who may have improperly recommended North Texas Energy Inc. to investors.
Oklahoma Securities Regulators Lawsuit
The Oklahoma Department of Securities (ODS) has reportedly issued a judgment enforcing compliance with a prior administrative order against North Texas Energy, Inc. and its principal on October 7th, 2024. This action reportedly stems from the company’s failure to adhere to requirements set forth in an earlier administrative order, which mandated the filing of specific statements and the production of documents.
The enforcement judgment reportedly compels North Texas Energy and its principal to comply with the original administrative order. This includes the obligation to submit the required statements and documents as previously directed by the ODS.
Regulatory Filings and Compliance Issues
North Texas Energy reportedly has a history of regulatory filings with the U.S. Securities and Exchange Commission (SEC). Notably, in October 2023, the company filed a Form NT 10-Q, indicating a delay in submitting its quarterly report for the period ending June 30, 2023. The filing did not anticipate significant changes in operational results compared to the previous year.
Additionally, the company has made multiple fundraising filings over the years, with the most recent being in October 2023. These filings often reported no incremental cash raised, which may suggest challenges in securing additional investment capital.
REG D Private Placements: High Risk Investments
North Texas Energy Inc. reportedly filed a form D to raise capital from investors in 2019, according to SEC filings.
Private placement investments carry significant risks, including:
- Illiquidity: These investments are long-term and difficult to sell.
- High Fees & Commissions: Brokers and advisors may earn more than 9% in commissions and fees, which can impact investor returns.
- Potential for Loss of Principal: Market volatility or poor performance can lead to substantial losses.
- Limited Investor Control: Management decisions are made by a trustee, restricting investor influence.
- Tax Implications: If regulatory requirements are not met, potential tax benefits could be at risk.
While some private placement investments may make periodic distributions, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment– sometimes close to 10% of the client’s total investment.
North Texas Energy Inc.: Suitable for you?
Under the “Regulation Best Interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment. If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.
If your advisor unsuitably recommended a private placement investment and you lost money, the securities attorneys at The White Law Group may be able to help you. You may be able to recover losses by filing a FINRA Arbitration lawsuit against the brokerage firm that sold you the investment.
Lawsuit Options: FINRA Arbitration vs. Class Action
Investors considering legal action may wonder whether a class action lawsuit or an individual FINRA arbitration claim is the better option. Typically:
- FINRA Arbitration is often more suitable for investors with losses exceeding $100,000.
- Class Action Lawsuits are usually pursued when numerous investors have small claims that are impractical to litigate individually.
FINRA Lawsuits
If you are concerned about investment losses in North Texas Energy Inc., you may have recovery options. If you want to learn more about your legal options, please contact the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
Last modified: May 2, 2025
