(888) 637-5510

Written by 11:25 am Blog, Securities Fraud Articles

Update on Securities Fraud Investigation into Mewbourne Oil Investments


Mewbourne Oil Investment Updates

The White Law Group continues to look into potential FINRA arbitration claims involving Mewbourne Oil and Mewbourne Energy Partners.

Mewbourne Holdings Inc is the parent company of both Mewbourne Development Corporation and Mewbourne Oil Company. According to their website, Mewbourne Oil is an independent oil and gas producer established in 1965.

Mewbourne Oil, based in Tyler, Texas, is the acting general partner for multiple Mewbourne Energy Partners general and limited partnerships offerings.  Based on online reports, it appears that in 2007 Mewbourne Energy began offering private placements to raise capital.

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.

Trouble with Alternative Investments

Oil and gas private placements are high-risk investments, and often more complex than traditional investments. FINRA registered broker-dealers are obligated to make recommendations to clients that are consistent with the clients’ risk tolerance, investment objectives, and financial situation.

However, private placements (like limited partnership oil and gas offerings) are sold with less regulation and oversight than other investments.  and are not always required to register with the Securities and Exchange Commission.

Private placements (like the limited partnership oil and gas offerings offered by Mewbourne), in most cases, are suitable only for sophisticated investors with a high net worth. These types of securities lack liquidity and investors in these investments must be able to risk total loss of their investment.

In addition to the high risk and lack of oversight, private placements often offer extremely high commission fees to the broker-dealer. According to the Mewbourne Energy Partners 07-A form S-1, the broker-dealer that sells this offering will earn an estimated 8% in commission. Such high commission rates often result in the unscrupulous broker-dealers pushing these types of investments onto clients regardless of whether the investment is suitable for them in light of their specific investment experience and objectives.

The White Law Group is investigating potential FINRA arbitration claims involving the following Mewbourne investments (among others):

Mewbourne Energy Partners 06-A LP

Mewbourne Energy Partners 07-A LP

Mewbourne Energy Partners 08-A LP

Mewbourne Energy Partners 09-A LP

Mewbourne Energy Partners 10-A LP

Mewbourne Energy Partners 11-A LP

Mewbourne Energy Partners 12-A LP

Recovery of Investment Losses

If you have suffered losses in a Mewbourne Energy Partners or Mewbourne Oil investment and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 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.

To learn more about The White Law Group, visit https://whitesecuritieslaw.com

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Last modified: October 16, 2017