Did your broker recommend you invest in Marcellus Shale Development LP (MDS Energy Development LLC)?
MDS Energy Development LLC is located in the heart of the Marcellus Shale fairway. The company sponsors public and private direct participation in oil and gas investment partnerships. MDS Energy Development LLC raises money for Reg D private placement offerings, which are sold by brokerage firms in exchange for large up front commission for brokers selling this product.
Alternative investments such as Marcellus Shale Development LP carry a much greater degree of risk compared to traditional investments. Marcellus Shale Development LP is an unregistered security that lacks regulatory oversight.
Over the past few years, oil prices have significantly declined. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped, including the values of Marcellus Shale Development LP. The volatile energy sector experienced significant turmoil, and many energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. Oil and gas companies experienced a spike in bankruptcies, which have left many investors reeling.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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