Securities Lawyer Blog | Victim of Fraud?

TAG | oil and gas investments to elderly

May/13

7

Striker Petroleum Investments Ponzi Scheme on Elderly Investors

Comments off · Posted by Securities Lawyer in FINRA

There were allegations filed with the Financial Industry Regulatory Authority or FINRA Dispute Resolution, which state that a broker-dealer with AXA Advisors in Orange County, California, persuaded a retired couple, and a retired woman, to invest in essentially worthless and inappropriate investments. This alleged Ponzi scheme preyed on retired Filipino-Americans.

The clients allege that the former AXA advisor guided them to invest $50,000 in Striker Petroleum in 2008. In 2009, the Securities & Exchange Commission filed suit against Striker alleging that Striker was essentially a Ponzi scheme. In 2011, the U.S. District Court in Dallas issued an order that investments in Striker were “essentially worthless” and that losses in those investments were “the result of fraud.” Also, the SEC issued a Cease and Desist order against the former AXA broker-dealer for selling other Ponzi-scheme style investments in Striker and other oil and gas properties.

As a result of this misrepresentation of Striker as a “safe investment,” the retired couple lost their entire investment.

Likewise, the former AXA broker-dealer advised the retired woman to invest $36,000 from her 401k into Halek Energy, which she also described as a “very safe investment” with working oil and gas wells in Texas. It further alleges that the former advisor also sold an unsuitable variable annuity that has locked up her assets for 10 years, until she is 80 years old.

Halek Energy, like Striker, was essentially worthless and the retired woman lost her entire investment.

FINRA claims seek damages against both the broker-dealer and AXA for the loss of the client’s investments, as well as compensation for their losses, penalties, fees and costs.

If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations in Striker Petroleum or Halek Energy, call for a free consultation on how to potentially recover your losses. To speak with an attorney call Soreide Law Group at 888-760-6552.

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Jan/12

17

Did You Invest in These Oil and Gas Offerings?

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group, PLLC, is currently investigating the following oil and gas deals:

KBS REIT, DBSI, BDA Bradford Drilling, United Development Fund, Leaf Equipment Leasing Fund, Cypress Equipment Fund, Net REIT, REEF Income and Development Fund, and Waveland Drilling Partners.

Investors can file arbitration claims, as an option if they have been victimized by these products, if the investments were recommended by a financial advisor at a brokerage firm.

There were massive commissions involved in oil and gas deals, and the commissions often provided an incentive for the broker to recommend these products. In many cases, these were not appropriate or suitable investment recommendations for their clients. Often, an unsuitable and inappropriate amount of the client’s portfolio was placed into these investments. Brokers and financial advisors have a duty to only recommend investments that are appropriate for their client.
 
If you or a family member have sustained losses in any of these oil and gas investments due to your stock broker or financial advisor’s recommendation, call 888-760-6552, or visit www.securitieslawyer.com.
 
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Dec/11

1

Oregon Fines LPL Financial Over Risky Sales to Elderly Clients

Comments off · Posted by Securities Lawyer in FINRA

The brokerage, LPL Financial, LLC, was fined $100,000 November 22, 2011,  by the State of Oregon for failing to supervise a broker that sold high-risk oil and gas partnerships to clients, many of whom were elderly.

According to the Oregon Department of Consumer and Business Services, a former LPL representative, Jack Kleck, sold the oil and gas investments to many Oregon residents. Given their age and investment objectives, the investments were not suitable.

On the BrokerCheck website of the Financial Industry Regulatory Authority Inc., or FINRA, Jack Kleck was a broker with LPL in La Grande, Ore., from 2000 to 2006, when he resigned, according to his profile. He was then with Pacific West Securities Inc., four months and has not been registered with another firm since 2007. The State of Oregon revoked his license in 2007 and fined Kleck $100,000 but suspended $70,000.

Having around 12,800 registered representatives and investment advisers, LPL Financial is the largest independent broker-dealer in the country.

According to the statement from the department, LPL failed to supervise the actions of Jack Kleck and failing to ensure that company policies and procedures were enforced.  Many of Kleck’s clients were elderly– 70s and 80s, and may not have been capable of making sound investment decisions, the Department said.

“LPL Financial has taken numerous steps to improve its compliance and supervisory practices,” the department said. “The company has increased the number of employees devoted to compliance- and supervision-related functions, increased its pre-sale review of transactions and enhanced branch office examinations.”

Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have experienced losses through LPL Financial, LLC, or Jack Kleck, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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