If you have suffered investment losses in oil and gas bonds and stocks or other energy investments, the Miami securities fraud attorneys at Sonn Law Group may be able to help you recover rightful compensation.
For many years, brokers and investment advisors pitched energy company bonds and other energy-related investments as safe, secure, and income generating investments for investors. In particular, brokers and investment advisors sold oil and gas bonds and stocks, master limited partnerships (MLPs) and exchange traded funds (ETFs) that invested in MLPs to seniors interested in generating income during their retirement years.
However, many individuals with investments in the energy market are suffering substantial losses.
At Sonn Law Group, we represent individual investors who have suffered losses in oil, gas, and other energy bonds and stocks. If your broker or advisor is at fault, we can fight to help you win just compensation.
Common Complaints from Oil and Energy Investors Who Have Suffered Significant Investment Losses
The following are just some of the most common examples of issues leading to compensable energy investment losses:
Fraud and Investment Scams
Many oil and gas bonds and stocks and other energy investments are heavily marketed to individuals – and often to senior citizens, in particular. In many cases, brokers and advisors have promised significant yields with little risk based upon the stability of the energy companies backing the bonds. In many cases, these promises are either fraudulent or part of an outright investment scam.
However, recent events have shown that the energy sector is not immune to market volatility, and many investors in energy bonds have suffered significant losses. Yet, fraudsters, scam artists, and self-interested brokers continue to peddle these bonds as “low-risk, high-reward” investments.
In some cases, brokers and advisors have led investors off course not intentionally, but as a result of negligence. The energy market is extraordinarily complex, and brokers and advisors who recommend bonds and other securities must make sure that they are knowledgeable about the risks involved. If you suffered losses in energy bonds or other energy investments, your broker or advisor may be to blame – and may be liable for the damage to your portfolio.
In some instances, brokers and investment advisors have recommended that individual investors – many of them retirees who rely on modest investment income to pay their bills – pour nearly their entire investment portfolios into oil and gas bonds and other energy-sector investments. This is a risky, even reckless, practice that puts investors at the mercy of the energy market. At Sonn Law Group, we have filed arbitration claims against some of the largest investment firms in the country on behalf of investors who have experienced substantial losses due to over-concentration in energy securities.
Even if an investor’s portfolio is not over-concentrated in the energy market, energy bonds still may not be suitable investments based upon the investor’s financial needs and investment goals. Brokers and investment advisors are required to recommend “suitable” investments based on these factors, as well as each individual investor’s personal tolerance for risk. With the volatility of the energy market, oil, gas, and other energy investments will not be suitable for many investors’ short- or long-term investment strategies.
Sales Practice Violations
In the energy sector in particular, we are seeing many instances of investors losing money after falling victim to sales practice violations by brokers and advisors. Fraud, misrepresentations, omissions of material facts, and failing to meet the requirements of the “suitability” rule are all examples of possible sales practice violations that may entitle harmed investors to restitution for their investment losses.
Have You Lost Money in Energy Bonds?
With the volatility of the energy market – and the oil sector, in particular – many investors are continuing to suffer substantial losses in energy and oil-related bonds and stocks, MLPs and other investments. If you have suffered unexpected and unexplained losses in energy investments, it is important to seek legal help right away. At Sonn Law Group, we offer free consultations to all harmed investors, and we don’t charge any fees unless we win your case.
Schedule Your Free Consultation at Sonn Law Group Today
To find out if you may be entitled to recover your investment losses, contact us today for your free consultation. Call (305) 912-3000 or submit our online form to speak with an attorney about your situation today.