Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Texas Energy Mutual LLC at the recommendation of their financial advisor. If you suffered losses investing in Texas Energy Mutual LLC, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
Rodney Pope, a former broker and Texas Energy Mutual LLC’s former Chief Executive Officer, has been barred by the SEC for his role in the Ponzi scheme. Pope served as the public face of the company because his partner, James VanBlaricum, was a known securities fraud recidivist. The pair allegedly defrauded investors between May 2013 and August 2016.
Texas Energy Mutual LLC investors were promised returns of 10 percent and were told that the drilling programs were productive and profitable, when many of the wells were actually dry. The company used investor funds to make payments to other investors, to pay personal expenses, and undisclosed sales commissions–in typical Ponzi scheme fashion.
As energy prices have declined so has the value of energy investments. Many investors have suffered significant losses in energy investments that were recommended to them by the financial advisor. Many of these investments were high risk and were unsuitable for their portfolios.
FINRA requires brokerage firms to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. Brokerage firms that fail to conduct adequate due diligence or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.