Trenton – Black River II LP: Securities Investigation

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk oil and gas investments, like Trenton – Black River II LP, to its clients.

Based on publicly available information, Trenton- Black River II LP is an oil and gas investment sponsored by John Henry Oil.  According to its website, John Henry Oil conducts its drilling operations in North Central Tennessee, primarily in Overton County, which has led the state in oil production since 1997. The company reportedly focuses on the Trenton/Black River play, a well-known oil and gas trend extending from upstate New York to Alabama. John Henry Oil is reportedly a privately owned company specializing in hydrocarbon exploration and development in the Appalachian Basin.

According to SEC filings, John Henry Oil reportedly filed a form D to raise capital from 70 investors in 2017 for the offering Trenton – Black River II LP. The offering type was equity and the total offering amount sold was purportedly $4,146,672. The sales commissions and fees paid were estimated at more than 10%, according to the Reg D.

Energy investments such as Trenton – Black River II LP typically involve a high degree of risk. These investments are often marketed as income producing with extraordinary tax benefits.  However, the energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities and many Reg D oil and gas investments have suffered losses.  These investments may seem wise at first, until the dramatic drop in distributions.

The White Law Group is currently investigating the following oil and gas offerings, among others:
Trenton – Black River II LP
Trenton – Black River IV LP
Trenton – Black River V LP
Trenton – Black River VI LP
Trenton – Black River VII LP

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses by filing a FINRA arbitration complaint.

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