Concerned about Investment Losses in Payson Drilling Fund 2015 I?

Did you suffer losses investing in a Payson Drilling Fund 2015 I private placement offering?  If so, The White Law Group may be able to help.

According to their website, Payson Petroleum is based in North Texas and “leads the way in providing oil investment opportunities to the independent investor.”

Payson and Payson Operating both filed for Chapter 7 bankruptcy June 10, 2016, a filing that later was converted to Chapter 11. According to the bankruptcy trustee, after administrative expenses, neither company will have funds available to pay its unsecured creditors.

Many oil and gas LPs have high expense ratios, and due to the decline in the overall health of the oil and gas market, are suffering. Some are on the brink of default, or worse yet, bankruptcy.  Such an outcome is extreme, but not unforeseen. It only highlights the unsuitability of these investments for most retail investors – particularly in large concentrations.

As we told you last November, the SEC filed fraud charges against brothers Matthew Carl Griffin and William Daniel Griffin with offering interests in two Texas partnerships through their company Payson Drilling Fund 2015 I , Inc.

The SEC alleges, between November 2013 – July 2014, the Griffins purportedly conducted a fraudulent two-phase offering of interests in two Texas partnerships, raising $23 million from approximately 150 investors for the purpose of developing three oil and gas wells.

Additionally, the SEC alleges that the Griffins misled investors about Payson’s promised participation in the program and about Payson’s compensation as the program’s sponsor and operator.

The White Law Group is investigating the liability that brokerage firms may have for recommending investments in oil and gas private placements such as Payson Drilling Fund 2015 I.

Payson Petroleum often raises money for investments through Reg D private placement. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%.

The Trouble with Private Placements

The trouble with alternative investment products, like Payson Drilling Fund 2015 I, 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 and bonds.

An additional risk inherent to Payson Petroleum offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must 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.

Also brokers can earn high commissions for selling Reg D private placements. This may drive them 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.

Payson Petroleum Offerings

The White Law Group is specifically investigating the following Payson Petroleum offerings, among others:
Payson Drilling Fund 2015 I
Payson Drilling Fund 2015 II LP
Payson Group LP
Payson North Texas Multi Well I LP
Payson Petroleum Jenny #1 LP
Payson Petroleum 3 Well LP

Free Consultation

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Payson Drilling Fund 2015 I 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 Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.