Striker Petroleum Investments Ponzi Scheme on Elderly Investors

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.