Erez Law is currently investigating financial advisors across the country who recommended their clients invest in Hard Rock Exploration, Inc., an independent oil and gas development company out of Charleston, West Virginia.
Hard Rock Exploration, Inc. sponsored drilling programs such as Hard Rock Partners 2009 L.P. and Hard Rock Partners 2001-A L.P. and other sponsored offerings. The company focused on drilling horizontal wells.
In September 2017, Hard Rock Exploration, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of West Virginia. In October 2017, the company converted the company’s Chapter 11 proceeding to Chapter 7, arguing that the estate is administratively insolvent. Hard Rock Exploration, Inc. owed $26 million.
Hard Rock Exploration, Inc. and other alternative investment products involve a high degree of risk, and they are typically sold as unregistered securities, which lack regulatory oversight.
Over the past few years, oil prices have significantly declined. 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 values of Linn Energy and many others. The volatile energy sector experienced significant turmoil, and many energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. Oil and gas companies experienced a spike in bankruptcies, which have left many investors reeling.
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, brokerage firms across the country may be liable for investment or other losses suffered by their 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.