BreitBurn Energy, Reef Oil Energy Partnerships Investments: Unsuitable Sales Practices by Brokers Investigated

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Unsuitable Sales Practices by Brokers Who Recommended BreitBurn Energy, Reef Oil & Partners Investigated by Securities Lawyers

BreitBurn Energy and Reef Oil and Partners are two Energy Partnerships whose securities may have been inappropriately sold to some investors by certain investment professionals, the Peiffer Rosca Wolf securities lawyers have learned.  BreitBurn Energy, Reef Oil and Partners were investment product that were not suitable for all investors, according to securities attorneys Joe Peiffer and Alan Rosca.  Certain investment professionals have been accused of recommending these energy partnerships to investors with disregard of those investors’ suitability and risk profiles.

Financial planners allegedly encouraged investment in energy partnerships that was supposed to allow investors to ride the boom in U.S. oil and gas production while receiving a steady stream of payments. For years, brokers allegedly enticed investors to purchase energy partnerships with the promise of large payouts. The partnerships were easy to sell with such high yield promises, and were a profitable source of fees for brokers and banks.

Oil Market Collapse Sparks Energy Partnership Securities Losses

In the past year, investors have lost approximately $20 billion in publicly traded drilling partnerships, or $8 of every $10 they had invested, according to a report prepared by FactSet for The Associated Press, as reported by CNBC. Actual losses of bonds sold by the partnerships in the five years since 2010 is likely in excess of $30 billion, with many down by half in last 12 months, and losses from private partnerships that don’t trade publicly and are difficult to track.

An unanticipated plunge in the price of oil explains much of the loss. However, many partnerships allegedly borrowed heavily and were running large risks even when the price of oil was twice as high a year ago. Energy partnerships are high-yield, high-risk securities, which provides for little financial cushion in a collapsing market.

Investor Rights Lawyers Investigating

Peiffer Rosca Wolf investor rights attorneys are currently investigating sales practices of some of the investment professionals who allegedly made unsuitable recommendations involving energy partnerships such as BreitBurn Energy, Reef Oil and Partners, and an affiliated brokerage firm, Reef Securities.

The Peiffer Rosca Wolf investor rights attorneys often represent investors who lose money as a result of alleged investment schemes. They are currently investigating sales practices of some of the investment professionals who allegedly made unsuitable recommendations involving energy partnerships such as BreitBurn Energy, Reef Oil and Partners, and an affiliated brokerage firm, Reef Securities.

Peiffer Rosca Wolf attorneys 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 investment professionals whom investors believe allegedly provided unsuitable recommendations involving energy partnerships may contact the investor rights attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1157 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.