FINRA Arbitration Filed Against ABRAHAM HEIMANN Due to Alleged Over Concentration of Miller Energy Stock

Soreide Law Group has filed several FINRA arbitrations on behalf of our clients against brokers/dealers who have recommended high-risk oil and gas stocks to investors who have conservative portfolios causing devastating losses to their irreplaceable retirement funds.
ABRAHAM HEIMANN CRD#: 1315922, a broker formerly with Oppenheimer and Cetera Advisors in the Atlanta, Georgia area, had yet another FINRA arbitration filed against him on behalf of elderly investors.
According to FINRA’s BrokerCheck, ABRAHAM HEIMANN has four Disclosures on his report, all of which are Pending Customer Disputes.  One of the most recent disputes involves a couple in their mid-eighties, one allegedly suffering from Alzheimer’s. ABRAHAM HEIMANN, allegedly concentrated their portfolio into high-risk energy stocks which caused the couple to lose approximately $1.5 million of their irreplaceable life savings.  A large part of the investment was made in Miller Energy, which Heimann had allegedly told his clients was a great investment.
Miller Energy Resources Inc., an oil and gas driller that operates in Alaska, filed for bankruptcy protection on October 1, 2015. The filing came after the U.S. Securities and Exchange Commission (SEC) charged the company and three officials of allegedly inflating the value of the company's Alaska oil and gas properties by $400 million. Miller was delisted by the New York Stock Exchange. The company is more than $170 million in debt. The SEC’s Division of Enforcement alleged that after acquiring assets in Alaska’s Cook Inlet area in 2009, Miller Energy overstated their value by more than $400 million, which in turn boosted the company’s net income and total assets. By allegedly inflating the valuation, it turned a penny-stock company into a company that reached a high of nearly $9 per share in 2013.  According to the SEC, Miller Energy paid $2.25 million, assuming certain liabilities to purchase the Alaska properties and then later reported them at a value of $480 million including double counting $110 million in fixed assets. Miller owes more than $200 million to numerous companies, including several in Alaska that support its operations. When oil prices plummeted, Miller Energy collapsed because they could not meet their obligations in the new lower oil price environment.
The Miller bankruptcy was due not only to sliding oil prices but also to investments in Cook Inlet that didn't pan out as they hoped.  Another factor that contributed to the bankruptcy was the financial restructuring plan that fell apart.  There was also an effort by a pair of oil field service companies to allegedly push Miller into bankruptcy, and the allegations from the Securities and Exchange Commission (SEC) that Miller inflated the value of Cook Inlet property it acquired in 2009.
The bankruptcy of Miller Energy and dozens of other oil and gas companies have left investors with devastating and irreplaceable losses to their portfolios.  Many of these investors made it clear to their brokers/financial advisors they were conservative investors not wanting an over-concentration of high-risk energy stocks.  Soreide Law Group has represented many clients in FINRA arbitrations against the broker/dealers who placed the conservative portfolios of our clients into high-risk oil and gas stocks.
According to FINRA’s BrokerCheck, which is available to the public, the damage amounts listed in ABRAHAM HEIMANN’s Pending Customer Disputes total in the millions of dollars.  Some of the allegations listed against Heimann in the Pending Customer Disputes were:  breach of fiduciary duty, negligence, unsuitability, unauthorized trading, and failure to diversify the portfolio.
ABRAHAM HEIMANN, was in the securities industry for 31 years and he was listed with 8 firms, the 2 most recent listed below:
06/29/2013 - 02/08/2016  CETERA ADVISORS LLC - ALPHARETTA, GA
01/02/2002 - 07/02/2013  OPPENHEIMER & CO. INC - ATLANTA, GA
If you’ve also suffered losses through the recommendations or actions of ABRAHAM HEIMANN, in the now bankrupt Miller Energy, or other high-risk oil and gas stocks, call Soreide Law Group and speak to an experienced securities lawyer at no cost to you regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents our clients nationwide through FINRA and we operate on a contingency fee basis.  Let our experience work for you.