Erez Law is currently investigating Raymond James & Associates financial advisors across the country who recommended the sale of oil and gas Master Limited Partnership investments in Memorial Production Partners LP. MLPs are limited partnerships that are publicly traded. It combines the tax benefits of a limited partnership with the liquidity of publicly traded securities.
It is reported that a former customer of Raymond James & Associates filed a FINRA arbitration alleging mishandling savings entrusted to its care by over concentrating the client’s portfolio in high risk energy sector investments, including Memorial Production Partners. According to the lawsuit, which was recently filed, Raymond James & Associates sold the securities to the customer and positioned them as safe and secure investments. Additionally, it is alleged that even when the customer expressed concerns as Memorial Production Partners declined, Raymond James & Associates recommended the customer hold their investments. These recommendations allegedly caused the customer to suffer damages of $99,000.
Memorial Production Partners LP and other oil and gas companies have experienced price fluctuations over the past few years, which has put financial stress on the oil and gas industry. 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 value of Memorial Production Partners. While financial advisers can effectively coax clients into lucrative high risk, high yield investments in the oil and gas industry, some fail to fully inform their clients of the inherent risks.
Memorial Production Partners LP focuses on the acquisition, production and development of oil and gas properties in the United States. In January 2017, the company eliminated $1.3 billion in debt by filing for reorganization under Chapter 11 of the United States Bankruptcy Code, according to a release on their website.
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, Raymond James & Associates 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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