Adageo Energy— Alleged Sales of Private Placement Offerings

Several Investors into Adageo Energy Have Allegedly Been Given Recommendations off Potentially Unsuitable Investments into a Number Oil and and Gas Related Ventures

Have you or a loved one invested your hard-earned money into investments related to Adageo Energy?

Peiffer Rosca Wolf securities practice lawyers are investigating potentially unsuitable or improper investment recommendations pertaining to Adageo Energy in a number of oil and gas related ventures.

Investors who believe they may have lost money in activity related to allegedly unsuitable recommendations of Adageo Energy in a number of oil and gas related ventures are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no obligation discussion about their options.

Adageo Energy Partners, LP allegedly brought in investment of $50 million and raised a minimum of $31 million of said amount through a number of  brokerage firms, according to said SEC filings currently under review by attorneys Alan Rosca and James Booker.

Said brokerages allegedly included:

•    Direct Capital Securities, Inc.,

•    Madison Avenue Securities, Inc.,

•    WFP Securities, Inc.,

•    Arete Wealth Management, LLC,

•    New bridge Securities Corporation,

•    Charter Pacific Securities, LLC,

•    ePLANNING Securities, Inc.,

•    Sunset Financial Services, Inc.,

•    Jesup & Lamont Securities Corp.,

•    Capital Guardian, LLC

Private placements are a lightly regulated market composed of hundreds of billions of dollars a year in new issues and have a long history in the oil and gas sector, and small prospectors, known as “wildcatters,” have used them as a quick and simple way to fund the expensive and highly speculative process of drilling, drawing in investors looking to make the most of ample federal tax breaks on energy exploration, according to a Reuters report on the matter.

Adageo Energy is a group which allegedly specializes in high-growth, high-return opportunities in the energy sector, and focuses on the identification, acquisition, drilling, development, and operation of oil and gas properties, and is is a sponsor of several oil and gas private placements, according to its web site.

The Reuters report was also allegedly able to offer a review of the offering memoranda and other marketing material for six oil and gas private placements issued over the past 15 years by four companies, including Atlas Energy LP, Reef Oil & Gas Partners of Richardson, Texas; Discovery Resources & Development LLC of Frisco, Texas, and Black Diamond Energy Inc of Buffalo, Wyoming.

From 34 Deals Reef Has Issued Since 1996, Only 12 Have Allegedly Paid out More Money to Investors than They Originally Contributed; Reef Allegedly Sold and Additional 31 Deals from 1996 to 2010 of which it Collected a Total of $146 million but Purportedly Paid out Only $55 Million

Reef, which has allegedly issued 34 deals since 1996, of which only 12 have paid out more cash to investors than they initially contributed, according to statements from Reuters being reviewed by attorneys Alan Rosca and James Booker.

Reef’s publicly available financial statements allegedly show that Reef sold an additional 31 smaller deals between 1996 and 2010 for which it collected a total of $146 million and paid out just $55 million, Reuters also notes.

In addition to Atlas and Reef, Reuters also looked into an entity known as Black Diamond, a group which allegedly struck thirteen deals between 2001 and 2006 but failed to generate enough revenue to return investors’ initial contribution, according to Reuters.

Black Diamond allegedly filed for bankruptcy in 2011 after a major bank creditor called its loans, butIt never completed the bankruptcy process, Reuters reports.

It is also interesting to note that its principals, one of whom, Charles Koval, was a founder of Atlas Energy, are allegedly attempting ing to sell Black Diamond’s leases and equipment, Reuters states.

Then there is Discovery Resources, which purportedly issued four private placements between 2006 and 2009, but allegedly filed for bankruptcy in 2010, as did its founder Richard Weyand, Reuters notes.

No allegations of misconduct are being made against Adageo, Reef, or the other issuers mentioned in this blog.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating potentially unsuitable or improper investment recommendations pertaining to Adageo Energy. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of allegedly unsuitable or improper investment recommendations pertaining to Adageo Energy may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1234 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.