Investigating Potential Claims: Permian Plains Properties LLC

If you invested in Permian Plains Properties LLC, you may be evaluating the risks associated with oil and gas private placements or concerned about potential losses. The White Law Group is investigating potential securities fraud claims involving the offering of Permian Plains Properties LLC, an oil and gas investment formed in 2023 and based in Midland, Texas.

According to a Form D filed with the SEC, Permian Plains Properties LLC is reportedly offering up to $16.3 million in mineral property securities using the Regulation D Rule 506(b) exemption. The offering lists Arete Wealth Management, LLC as the selling broker-dealer, with estimated commissions of up to 6% and an additional 2% dealer-manager fee.

Because these offerings are often sold to retail investors—frequently retirees seeking income or diversification—questions can arise about suitability, risk disclosure, and the due diligence of selling brokerage firms.

About Permian Plains Properties LLC

• Entity type: Limited Liability Company

• Year formed: 2023

• Industry: Oil & Gas

• Total offering amount: $16,352,631

• Broker-dealer involved: Arete Wealth Management, LLC

• Use of proceeds: Up to 3% of investor capital paid as acquisition fees to related parties

Understanding Oil & Gas Private Placements

Private placements in the oil and gas sector—such as drilling programs, mineral rights offerings, or energy LLCs—are speculative investments designed primarily for accredited investors. These offerings are exempt from SEC registration, meaning they typically provide limited transparency, minimal liquidity, and higher risk than publicly traded alternatives.

Common concerns with oil and gas private placements include:

1. High Risk and Potential for Total Loss

Energy markets fluctuate significantly based on commodity prices, geopolitical events, drilling success, and operational costs. Many oil and gas drilling or mineral programs fail to return investor capital.

2. Lack of Liquidity

These investments often prohibit redemption for many years—sometimes indefinitely.

3. Conflicts of Interest

Fees paid to related parties (such as acquisition fees, management fees, or organization costs) may reduce potential returns. In this case, the Form D notes that 3% of investor capital may be paid to a parent company affiliated with the managers.

4. Aggressive Sales Practices

Private oil and gas programs are frequently marketed by brokerage firms through high-pressure sales tactics, targeting retirees seeking passive income.

Did Your Broker Properly Evaluate the Risks?

FINRA requires brokerage firms to:

• Perform reasonable due diligence on any private placement before recommending it

• Ensure the investment is suitable for the investor’s financial profile

• Fully disclose risks, fees, and conflicts of interest

If a financial advisor fails to meet these obligations, the firm can be liable for losses through a FINRA arbitration claim.

FINRA Arbitration vs. Class Actions: What’s the Difference?

Most disputes involving brokerage-sold investments, including private oil and gas offerings, are resolved through FINRA arbitration, not class actions.

FINRA Arbitration

• Individualized review of your circumstances

• Typically faster and more efficient

• Can result in recovery of losses, interest, and attorney fees (in some cases)

Class Actions

• Involve large groups of investors

• Often focus on issuer misconduct—not broker suitability

• Recoveries may be smaller or subject to long delays

If the issue stems from misrepresentation by a broker or the recommendation of an unsuitable investment, FINRA arbitration is usually the appropriate avenue.

Recovery Options for Investors in Permian Plains Properties LLC

The White Law Group is reviewing whether brokerage firms—including Arete Wealth Management, LLC—performed adequate due diligence before recommending Permian Plains Properties LLC to investors.

You may have a claim if you:

• Were not fully informed of the risks

• Have experienced losses

• Were recommended the investment despite conservative or income-focused goals

• Were sold the offering by a broker with undisclosed conflicts or incentives

Our firm has recovered millions of dollars for investors through FINRA Dispute Resolution and continues to investigate high-risk energy offerings nationwide.

Frequently Asked Questions

1. Why are oil and gas private placements considered high risk?

They often involve speculative drilling outcomes, volatile commodity prices, high upfront fees, and little regulatory oversight. Many fail to generate profits, and some collapse entirely.

2. Is Permian Plains Properties LLC still raising money?

Yes. According to the Form D, the issuer continues to offer up to $16.3 million in securities.

3. How do I know if my advisor was negligent in recommending this investment?

If you were a conservative or income-oriented investor, relied on your broker’s advice, or were not clearly informed about risks, illiquidity, or high fees, you may have a claim. Speaking with a securities attorney can clarify your options.

The White Law Group Can Help

If you invested in Permian Plains Properties LLC and are concerned about your investment, you may be able to recover your losses through a FINRA arbitration claim.

For a free evaluation of your potential claim, contact the securities attorneys at The White Law Group at (888) 637-5510or visit our website for more information.