Resource Anadarko Royalties LLC – Investigation | Complaints & Lawsuits

Resource Anadarko Royalties LLC – Investigation | Complaints & Lawsuits

The White Law Group is investigating potential securities claims involving Resource Anadarko Royalties LLC, an oil-and-gas–focused private placement formed in 2019 and based in Dallas, Texas. According to a Form D filing with the SEC, the issuer is offering up to $23.75 million in mineral property securities under Rule 506(b) of Regulation D, with a minimum investment of$100,000.

The offering is reportedly managed by executives of Resource Royalty, LLC. The filing lists sales compensation arrangements involving JCC Advisors, LLC (CRD# 146776) for solicitation across dozens of U.S. states.

If you invested in Resource Anadarko Royalties LLC and are now concerned about your investment or the recommendation made by your financial advisor, The White Law Group may be able to help you understand potential recovery options.

What Is Resource Anadarko Royalties LLC?

Resource Anadarko Royalties LLC is an energy-sector private placement focused on acquiring or holding interests in oil-and-gas mineral properties. These types of offerings often promise investors potential income from royalty interests and exposure to the energy commodities market.

Because investments like these are typically sold through brokerage firms to accredited investors, they often carry high risk, limited liquidity, and significant fees and commissions—in this case, up to 6% sales commissions to participating broker-dealers.

Risks of Oil & Gas Private Placements

Oil and gas private placements—such as royalty funds, drilling programs, and mineral development partnerships—are widely considered speculative and high-risk. Common risks include:

1. Commodity Price Volatility

Revenue from royalties or production can fluctuate dramatically with oil and natural gas prices. Periods of low commodity pricing can significantly reduce investor payouts or halt distributions entirely.

2. Declining Well Production

Oil and gas wells generally experience steep production declines over time, reducing royalty income and long-term profitability.

3. Limited Liquidity

Investors are typically unable to sell or redeem their units. Private placements often last years, with no guarantee of income or return of principal.

4. High Fees & Commissions

Up-front commissions to brokers, marketing expenses, management fees, and other offering costs can significantly reduce the amount of investor capital that goes toward underlying assets.

5. Conflicts of Interest

In many offerings, the managing entity both selects and operates the assets, creating potential conflicts regarding deal structure, fees, or asset valuation.

6. Lack of Transparency

Unlike publicly traded energy investments, Regulation D offerings have minimal reporting requirements, making it difficult for investors to monitor performance or assess risk.

Because of these issues, oil and gas private placements may be unsuitable for many retail investors, particularly those seeking income, lower-risk investments, or liquidity.

Broker Due Diligence Requirements

Broker-dealers that sell private placements like Resource Anadarko Royalties LLC must:

• Conduct reasonable due diligence on the issuer and the offering
• Ensure the investment is suitable based on the investor’s financial situation, objectives, and risk tolerance
• Disclose all material risks, fees, and conflicts of interest
• Make only fair and balanced recommendations

Unfortunately, private placements are often sold because they generate large commissions, which can create incentives for brokers to recommend them even when they may not be appropriate for the customer.

If your broker failed to perform adequate due diligence or sold this investment unsuitably, the firm may be liable for your losses.

How to Recover Losses: FINRA Arbitration vs. Class Actions

Investors seeking recovery from unsuitable recommendations or broker misconduct typically proceed through FINRA arbitration, not class actions.

FINRA Arbitration

• Primary forum for disputes with brokerage firms
• Generally faster and more efficient than court
• Investors may recover losses for unsuitable investment recommendations, misrepresentation, or failure to conduct due diligence

Class Action Lawsuits

Class actions involve claims against the issuer, not the selling brokerage firm, and are not typically available—or effective—for private placements like Resource Anadarko Royalties LLC.

Most investors recover losses through individual or group FINRA arbitration claims against the brokerage firm that recommended the investment.

Broker–Dealers That Sold the Offering

According to the Form D filing, sales compensation was connected to:

• JCC Advisors, LLC (CRD# 146776)
• Additional registered broker-dealers that may have entered selling agreements with the issuer

If your financial advisor or brokerage firm recommended Resource Anadarko Royalties LLC, you may have a claim for recovery depending on the circumstances of the sale.

Concerned About Your Investment in Resource Anadarko Royalties LLC?

The securities attorneys at The White Law Group are investigating potential claims involving Resource Anadarko Royalties LLC and the broker-dealers that marketed the offering to investors.

If you suffered losses or are concerned about your investment, call The White Law Group at (888) 637-5510 for a free consultation. You may be able to recover your losses through FINRA arbitration on a contingency-fee basis.