Layton Energy Wharton LP Investors Could Recover Losses

by InvestorLawyers on October 18, 2012

in Arbitration,FINRA,Private Placements,SEC,Securities Fraud,Suitability

Stock fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment in a Layton Energy Wharton LP product. As a Texas-based energy company, Layton Energy Wharton offers various private placements, one of which is Layton Energy Wharton LP. Launched in 2007, this investment’s aim was to raise $10,000,000 for the purpose of acquiring interests in oil and gas deals, according to its filing with the Securities and Exchange Commission.

Layton Energy Wharton LP Investors Could Recover Losses

According to securities arbitration lawyers, because private placements like Layton Energy Wharton LP are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors. Private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission.

FINRA Executive Vice President and Chief of Enforcement, Brad Bennett, has stated that, “FINRA continues to look closely at sales of private placements to determine whether the selling firms are fulfilling their responsibilities to customers.”

According to stock fraud lawyers, because the creation and sale of private placements often carry high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. It appears that some of the brokerage forms that sold Layton Energy Wharton LP failed to adequately assess the investment’s risk and made unsuitable recommendations of this product to investors.

If you suffered significant losses as a result of your investment in Layton Energy Wharton LP, or another private placement, and you believe you were unsuitably recommended this product, you may be able to recover your losses through FINRA arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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