Investor Lawyers Blog
Investment fraud lawyers are currently investigating potential claims on behalf of investors who suffered losses as a result of their investment in Patriot Minerals. Patriot Minerals, according to its Securities and Exchange Commission Form D filing, is a San Antonio, Texas-based oil and gas exploration company. Patriot Minerals has several offerings of Regulation D private placements that are designed to generate capital for its offerings. These private placements include Tri-State Development Program and Patriot Minerals Arapaho. Certain Financial Industry Regulatory Authority (FINRA)-registered broker-dealers offered and sold these private placements and, in some cases, may have done so inappropriately.
According to securities arbitration lawyers, 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. Because these investments are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors.
Investment fraud lawyers say that 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. FINRA rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.
Current investigations regarding this investment are related to whether FINRA-registered brokerage firms can be held liable for improperly selling the Patriot Minerals Regulation D private placements and other high-risk private placements to their clients. Any investors who were recommended and sold the Patriot Minerals private placements that could not be considered sophisticated, high-net-worth investors could recover losses through FINRA arbitration.
If you suffered significant losses as a result of your investment with Patriot Minerals or another private placement, you may have a valid securities arbitration claim. 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.