Oil and Gas Investments

Broker William Campbell Accused of Making Unsuitable Recommendations

April 22, 2021 | by Staff Attorney

Broker William Campbell, currently employed at David Lerner Associates, Inc., (David Lerner) has been subject to at least four customer complaints during the course of his career. All four complaints allege Campbell of making unsuitable trading recommendations.

According to a BrokerCheck report, in August 2020, a customer made allegations against Campbell for unsuitability and sought approximately $90,000 in damages. Furthermore, in June 2019 another customer alleged that Campbell made unsuitable trading recommendations. The Claimant in this case is seeking damages in the amount of $120,000 and the claims involve a private placement.

Recently, our firm has received customer complaints concerning the sale of private placements being underwritten and offered by David Lerner in Energy 11 and Energy Resources 12 oil & gas partnerships. These funds have cut distributions and appear to have lost a substantial amount of investor capital.

Energy 11 was formed to enable investors to invest in oil and gas properties located onshore in the United States. The funds’ stated primary objectives are to acquire producing and non-producing oil and gas properties with development potential, and to enhance the value of those properties through drilling and other development activities. The fund plans to after five to seven years to engage in a liquidity transaction in which they will sell properties and distribute the net sales proceeds to investors, merge with another entity or list common units on a national securities exchange.

Oil & Gas Investment Funds See Dramatic Declines – Investor Loss Recovery

June 9, 2020 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products. Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments. Many investors do not realize that many of these investments contain futures contracts and contain derivative features that warp and distort the value of these funds and make them unsuitable for long-term holdings. Investors who have been recommended to buy and hold these products by their financial advisors may have viable claims for investment recovery.

These oil and gas investment funds include:

United States Oil Fund LP – USO
ProShares K-1 Free Crude Oil Strategy ETF – OILK
Breakwave Dry Bulk Shipping ETF – BDRY
Credit Suisse X-Links Crude Oil Shares Covered Call ETN – USOI
SPDR S&P Oil & Gas Equipment & Services ETF – XES
iShares U.S. Oil Equipment & Services ETF – IEZ
United States Brent Oil Fund LP – BNO
VanEck Vectors Oil Services ETF – OIH
InfraCap MLP ETF – AMZA
Invesco S&P SmallCap Energy ETF – PSCE
Invesco Dynamic Oil & Gas Services ETF – PXJ
iPath Pure Beta Crude Oil ETN – OLEM
United States Gasoline Fund LP – UGA

Some of these products listed utilize investments in futures contracts for natural gas, crude oil, heating oil, gasoline, and other petroleum-based fuels that are traded on the New York Mercantile Exchange, ICE Futures or other U.S. and foreign exchanges. These investments warn that the price relationship between the near month contract to expire and the next month contract to expire that compose the Benchmark Futures Contract will vary and may impact both the total return over time of the investments net-asset-value (NAV), as well as the degree to which its total return tracks other oil and gas related price indices’ total returns.

Duff & Phelps Select Energy MLP Fund – Investor Loss Recovery

May 29, 2020 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products. Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs). Duff & Phelps Select Energy MLP and Midstream Energy Fund Inc. (NYSE: DSE) is a mutual fund that invests primarily in MLPs.

In the past year the Duff & Phelps Select Energy MLP has returned a -91% return as of March 31, 2020. In fact, in mid-2015 the fund had a price as high a $14.18 a share and has fallen all the way to a low of $.2 a share.

As a background, MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow. In 2013 banks earned fees of $890.3 million from MLP issuance. Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.” Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get. According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…” Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.” At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

Kayne Anderson MLP/Midstream Investment Company – Investor Loss Recovery

May 19, 2020 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products. Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs). Kayne Anderson MLP/Midstream Investment Company (NYSE: KYN) is a non-diversified, closed-end fund with an investment objective to obtain a high after-tax total return for its shareholders by investing at least 85% of our total assets in energy-related master limited partnerships and in other companies that operate assets used in the gathering, transporting, processing, storing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined petroleum products or coal.

Year to date Kayne Anderson MLP/Midstream Investment Company has returned a -57.97% return as of April 30, 2020.

As a background, MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow. In 2013 banks earned fees of $890.3 million from MLP issuance. Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.” Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get. According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…” Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.” At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

ClearBridge MLP and Midstream Fund – Investor Loss Recovery

May 19, 2020 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products. Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs). ClearBridge MLP and Midstream Fund, Inc. (NYSE: CEM) is a mutual fund that provides a single investment for accessing a portfolio of energy-related MLPs and midstream entities.

Year to date ClearBridge MLP and Midstream Fund has returned a -68.73% return as of April 30, 2020. The price of the fund has fallen to $3.19.

As a background, MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow. In 2013 banks earned fees of $890.3 million from MLP issuance. Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.” Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get. According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…” Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.” At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

Mewbourne Energy Partners Investor Loss Recovery

May 18, 2020 | by Staff Attorney

The investment attorneys with Gana Weinstein LLP are investigating and representing investors who were inappropriately recommended oil and gas and commodities related investments. Investors may have potential legal remedies due to unsuitable recommendations by their broker to invest in this speculative and volatile area.

Mewbourne Oil Company claims on its website to have grown into one of the more prominent independent oil and natural gas producers in the Anadarko and Permian Basins of Texas, Oklahoma and New Mexico. The company focuses its efforts in the Anadarko and Permian Basins. Mewbourne clamis that the Anadarko and Permian Basins have produced more than 42 billion barrels of oil and 220 trillion cubic feet of natural gas and contain many of the largest oil and natural gas fields in the United States.

Mewbourne raises funds from investors through brokerage firms by selling interests in private placement partnerships. Those offerings include:

Mewbourne Energy Partners 11-A, L.P.

Mewbourne Energy Partners 12-A, L.P.

Mewbourne Energy Partners 13-A, L.P.

Mewbourne Energy Partners 14-A, L.P.

Mewbourne Energy Partners 15-A, L.P.

Mewbourne Energy Partners 16-A, L.P.

Mewbourne Energy Partners 17-A, L.P.

Mewbourne Energy Partners 18-A, L.P.

Mewbourne Energy Partners 19-A, L.P.

Goldman Sachs MLP Income Opportunities Fund – Investor Loss Recovery

May 12, 2020 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products. Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs). Goldman Sachs MLP Income Opportunities Fund (NYSE: GMZ) is a mutual fund that invests primarily in MLPs

In the past year the Goldman Sachs MLP Income Opportunities Fund has returned a -78% return as of April 30, 2020.

As a background, MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow. In 2013 banks earned fees of $890.3 million from MLP issuance. Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.” Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get. According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…” Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.” At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

Advisor Michael Sims Alleged to Have Recommended Unsuitable Energy Securities

September 27, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Michael Sims (Sims), formerly employed by Wedbush Securities Inc. (Wedbush Securities), has been subject to at least four customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA) Sims has been accused by multiple customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

In August 2019 a customer filed a complaint alleging that Sims violated the securities laws by engaging in, among other violations, excessive trading, inappropriate investments, mismanagement of account, excessive commissions and lack of supervision. The claim alleges $250,000 and is currently pending.

In January 2019 a customer filed a complaint alleging that Sims violated the securities laws by engaging in, among other violations, unsuitability, breach of fiduciary duty of loyalty, negligence, negligent misrepresentation, breach of contract, material omissions and misrepresentations in connection with the sale of securities, fraud and deceit based on concealment and violations of Federal statutes, California laws and FINRA Rules and. The claim alleges $2.7 million and settled for $702,600.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

Energy 11 and Energy Resources 12 Oil and Gas Private Placements – Investor Recovery Options

December 19, 2018 | by Staff Attorney

The investment attorneys at Gana Weinstein LLP are investigating various potentially unsuitable sales of oil and gas private placements. These investments include those being underwritten and offered by David Lerner Associates, Inc. (David Lerner) – Energy 11 and Energy Resources 12.

Energy 11 was formed to enable investors to invest in oil and gas properties located onshore in the United States. The funds’ stated primary objectives are to acquire producing and non-producing oil and gas properties with development potential, and to enhance the value of those properties through drilling and other development activities. The fund plans to after five to seven years to engage in a liquidity transaction in which they will sell properties and distribute the net sales proceeds to investors, merge with another entity or list common units on a national securities exchange.

Investors often do not understand the substantial risks of oil and gas private placements. As reported in Reuters, when offerings by Atlas Energy LP, another issuer of oil and gas private placements were analyzed, investors only get to see 65-70% of their capital actually put to work on oil and gas projects. Further, the returns on these projects had more in common with running profitable casinos than investments. Reuters found that slightly more than half of 43 private placements Atlas issued over the past three decades investors lost money or just broke even. While investors lost in more than half of the deals in 29 or 67% of those deals, Atlas actually out-performed their own investors.

J.J.B. Hilliard Advisor Michael Barnett Alleged to Have Recommended Unsuitable Energy Securities

October 10, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Michael Barnett (Barnett), employed by J.J.B. Hilliard, W.L. Lyons, LLC (JJB Hilliard), has been subject to six customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA) Barnett has been accused by a customer of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The most recent claim was filed in June 2018 and alleges breach of contract, breach of fiduciary duty, violation of the Kentucky Consumer Protection Act, violation of Kentucky’s blue sky laws, and violation of the Illinois Consumer Fraud Act with respect to an over-concentration and losses in Breitburn Energy (BBEP) and that BBEP was unsuitable. The claim alleges $42,791.95 in damages and is currently pending.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.