Oil and Gas Litigation Lawyer
Our law firm represents individuals from across the country who discover they have invested in fraudulent oil and gas companies. Our only concern is to recover our clients’ money. We have extensive experience in pursuing scam artists, battling fraud and winning in the courtroom.
What Does an Oil and Gas Trial Lawyer Do?
After our initial client conference and review of requested information and documents, we take the following actions:
- Determine if the oil and gas company and the salesman are registered under the law to sell interests in oil and gas.
- Identify production totals from the wells for the last few years.
- Draft a lawsuit with extensive detail.
- Prepare discovery to the defendants-which means we ask for very specific information regarding the scam.
- Once the lawsuit and discovery is complete, we may file a motion for a summary judgment. This means, that based on the evidence our law firm has discovered we ask the court to award a judgement for our client, and avoiding an expensive trial.
Generally, Who Invests in an Oil and Gas Project?
Most fraudulent oil and gas companies target “accredited investors” and the elderly in the hopes of getting their hard-earned money. An “accredited investor” is defined as an individual that has made $200,000 or more on an annual basis for the past two out of three years and is likely to make that same amount this year. If it is a couple qualifying together that amount is raised to $300,000. If they do not meet the income requirements, they can qualify using a net worth of over $1 million, excluding their primary residence. Unfortunately, the scam investment companies like to “cold call” elderly people because they are trusting. As a result, it’s easier to get them to invest in a fraudulent oil and gas project.
How Did They Get My Contact Information?
Scam artists “buy” lists from companies who have compiled the names and contact information of prosperous people. Then, scammers use established and refined sales tactics to convince the unsuspecting to invest in worthless oil and gas projects.
What Are Some of the Documents I Should Receive Prior to Investing?
- The offering documents, meaning the sales/promotional materials regarding the oil and gas project. They are commonly referred to as a “CIM” or a “Private Placement Memorandum.”
- The Subscription Agreement.
- The operating agreement for the oil & gas project.
- All “Cease & Desist” orders issued by any governmental entity (these should be included in the offering documents).
- The organizational chart of the oil & gas company.
- Certified copies of State documents proving that the company and its salesman are registered as required under the securities law.
What are Some of the Initial Warning Signs of an Oil and Gas Fraud?
Here are just a few classic examples:
- You received a “cold call.” Meaning you do not have a prior investment relationship with the caller.
- You don’t know how the caller got your name.
- The salesman states that even he (or a family member) has invested in the deal he is offering.
- The salesman says, “A prior investor just withdrew, due to a divorce, so there is one unit left. Do you want it?”
- The salesman mentions investing in a “unit” of a project.
- The caller mentions, “Exxon/Mobil is drilling next to this lease.”
What You Should Know About Oil and Gas Investment
There are too many insights to list in this article. However, here are several vital tips you need to know prior to exploring any oil and gas investment:
- Most likely, the investment is a “security” under the law. As such, there are many strict requirements that the company and its salesman must comply with prior to offering to sell or selling this investment.
- The oil and gas company must obtain permits from the State where the oil & gas project is located.
- The offering documents must list the company’s history of lawsuits and if the company and/or any of its salesmen have been subject to any “Cease & Desist” orders from another state.
- The company must disclose how the salesman is paid if you invest.
- The company must disclose if the investment is high risk.
After Investing, What Are Some of the Warning Signs?
Fraudulent oil and gas companies present investors with myriad reasons as to why he/she is not getting the expected returns. Most of these excuses are essentially the same.
- Some of the operator’s equipment needed unexpected repairs.
- The weather has held up the drilling.
- There is an unforeseen problem with the landowner.
- There is a lot of water in the well which first needs to be removed.
- The crew just experienced a major crack in the well-bore.
- We hit a “dry hole”.
These are just a few of many lies offered. Our law firm has found that once the fraudulent oil & gas company gets your money, they do not care if the well produces or not. It is likely that the oil and gas company significantly marked up the purchase price of the lease before the investment was sold; therefore, they have already made a large profit on that transaction and are not really concerned about the oil and gas production.
Can Any Trial Attorney Help Me?
In theory, yes. However, as previously mentioned, since oil and gas investments are likely “securities,” it’s always best to engage a securities law firm with years of experience representing people who were victims of oil and gas frauds. Security litigation is definitely not for an inexperienced litigator.
Benefits of an Experienced Oil & Gas Litigation Law Firm
We’re here to help investors achieve justice in the face of fraud.
Our Oil and Gas Litigation Law Firm has been fortunate to have represented over 130 oil and gas investors from all over the United States. Every week, many across the nation contact us regarding investment fraud schemes, oil and gas disputes, royalty disputes, breach of contact and concerns over misappropriation of assets. We are candid with every caller. We share the “good, bad and the ugly” truth about their situation. Candor and ethics are key.
Oil and Gas Disputes – Free Consultation
If you have been deceived by a fraudulent oil and gas company, or need help resolving oil and gas disputes, breach of contract, or, have concerns over misappropriation of assets, contact an experienced oil & gas litigation lawyer. Call us today for a free consultation at 972-544-6968 or contact us online. An investment fraud attorney will review your case and explain potential legal courses of action so that you may receive the compensation you deserve.
Our mission is to help undo the damage of oil and gas fraud — in order to recover fortunes and restore lives.