PetroRock Mineral Holdings Lawsuits

Recovery of Investment Losses in PetroRock Mineral Holdings, LLC

The White Law Group is investigating securities claims involving PetroRock Mineral Holdings, LLC, Resolute Capital Partners, and Homebound Resources LLC. 

The Resolute/PetroRock Investments were marketed and sold across the country through various sales agents. If the agents who facilitated your investment were affiliated with a FINRA-member brokerage firm or an SEC-registered Investment Adviser, you might be able to seek compensation for any investment losses you incurred. These claims are distinct from the class action filed directly against Resolute/PetroRock and could be pursued concurrently.   

Resolute Capital Partners, LLC, Homebound Resources, LLC and PetroRock Mineral Holdings, LLC reportedly issued unregistered equity and debt securities to retail investors, many of whom were retirement age.  The Resolute/Petrorock investments were reportedly represented to be safe, income producing investments with unique tax benefits.

SEC Charges: PetroRock Mineral Holdings and Homebound Resources

The Securities and Exchange Commission reportedly imposed remedial sanctions and a cease-and-desist order against Homebound Resources, and its two owners on September 24, 2021. 

The agency alleged that sales agents acting on behalf of the two indvividulas who controlled Homebound sold more than $350 million of debt and equity securities in unregistered offerings, based on working interests in oil and gas wells, to retail investors. 

The two individuals allegedly failed to sufficiently support projections of future oil production, made statements about potential tax benefits that were unavailable to certain investors, overstated cash reserves, and made incomplete disclosures regarding potential uses of investor funds, including the amount of funds that would be used for payments to prior debt and equity investors, according to the commission. These statements and omissions were allgedly materially misleading. 

Promissory Notes – PetroRock Mineral Holdings

According to the SEC’s complaint, the respondents sold promissory notes that related to a loan to PetroRock.   Those notes may have been sold with misrepresentations about the output of oil wells.  Further, the offering materials allegedly failed to account for the ultimate use of investor funds, as well as the tax treatment of the investments. 

The SEC alleges that investor funds may have been used to pay off earlier investors, or to pay off undisclosed related parties in an unrelated equity transaction. 

Resolute/PetroRock Offerings

The White Law Group is investigating the following Resolute/Petrorock offerings, among others:

Strategic Energy Assets III, IV, V, VI, VII & VIII
Choice Energy Fund I, II & III
Advantage Capital Holdings I
Legacy energy I & II
PetroRock Mineral Holdings LLC

Class Action vs. Individual FINRA Arbitration Lawsuit 

You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually. 

FINRA Attorneys

If you are concerned about your investment in PetroRock Mineral Holdings or Homebound Resources, the White Law Group may be able to help you. To speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation. 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.