Oil and Gas Investments
Whether you are just dipping your toe into the world of investing or you are a long-time investor, ensuring that your financial goals and interests are protected can be difficult. Knowing which broker to choose and whether they are serving you competently and diligently is a difficult but critically important analysis. Many brokers like to make lofty promises about the financial returns that certain investments can yield, but they may fail to disclose the associated risks and neglect to mention how a strategy may not line up with what the investor ultimately desires. This is common with new forms of investment vehicles, but it also occurs when it comes to longstanding financial markets like the oil and gas industry. If you are concerned that your broker has deliberately or negligently led you astray, Los Angeles securities fraud lawyer Steve A. Buchwalter is ready to assert your rights.Understanding the Risks Associated with Oil and Gas Investments
Over the years, investment advisers and brokerage firms have marketed energy company bonds and other energy-related investment vehicles as a safe choice to generate income for investors. More specifically, investment advisers and brokerage firms marketed oil and gas stocks and bonds, exchange trade funds (ETFs), and master limited partnerships to senior investors who wanted to earn income during their retirement. What many of these investment advisers and brokerage firms fail to mention, however, is that there are serious risks associated with oil and gas investments.
Unfortunately, some brokers engage in fraudulent activities when marketing oil and gas investments to seniors, promising substantial yields while downplaying the risks based on the stability of the energy company that backs the bond. In less nefarious circumstances, investment advisers fail to take the time to understand the complex and constantly changing energy industry, in which new technologies and regulatory pressures are constantly shaping its future. A broker who fails to understand this dynamic industry may make a negligent recommendation to a client that causes the client to incur a substantial financial hardship. Another example of investments in oil and gas, leading to financial headaches for investors is overconcentration, which happens when a broker fails to balance a client’s portfolio and focuses all of their assets in a few areas instead.Assert a Negligence Claim Against the Broker Who Caused your Financial Losses
If you have lost money as a result of your broker’s negligent decision to invest your funds in oil and gas investments, you may be entitled to compensation. California provides a legal remedy for investors who have been burned by their brokers. Because of their sophistication and knowledge, brokers are held to the highest standard of care when it comes to advising clients about investment opportunities. This means that they must fully disclose all risks and be candid with their clients. Brokers cannot place the financial well-being and potential profit of their business ahead of their clients’ needs. If a broker fails to use this level of fiduciary care in advising a client, the client can retain an attorney to bring a negligence action against the broker and potentially the brokerage firm to recover the funds that they lost as a result of the negligence. According to the legal doctrine of vicarious liability, brokerage firms are held liable for the negligent acts of their employees. There are also certain federal regulations that require brokerage firms to maintain an oversight program to ensure that their employees are playing by the rules and acting in their clients’ best interests. In the unfortunate circumstance that your broker intentionally misled you about a particular investment or used your accounts for their own financial gain, you can seek punitive damages on top of reimbursement for the funds that you lost. A dedicated securities lawyer can assist you with determining whether you have a viable cause of action and how to proceed.Consult a Los Angeles Attorney to Determine Your Course of Action
Discovering that your broker or brokerage firm took advantage of your trust is a disturbing and frustrating experience. At the Law Office of Steve A. Buchwalter, our lead attorney has decades of experience as a securities lawyer in the Los Angeles area and understands how to ensure that you hold a negligent or reckless broker or firm responsible for the harm caused to your future. Proudly serving people in cities from Pasadena and Beverly Hills to Newport Beach and Santa Barbara, we provide a free consultation to help you learn more about your rights and whether you have a cause of action against a broker who may have burned you. Call us now at (818) 501-8987 or contact us online.