Payson Petroleum, Inc. Investment – Goodman & Nekvasil May Recover Investor Losses in Payson Petroleum Inc.
Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, continues to investigate brokerage firms that placed elderly retirees and other conservative investors in high-risk oil and gas related investments, including Payson Petroleum, Inc.
Even though high yield or junk bonds, notes, limited partnership units, and stock issued by Payson Petroleum, Inc. and other oil and gas companies have considerable risk, overzealous brokers, brokerage firms and registered investment advisors have nonetheless recommended Payson Petroleum, Inc. and these types of investments to conservative investors seeking income. We believe that investors in PAYSON PETROLEUM INC. lost a significant amount of their savings when Payson Petroleum, Inc. filed for bankruptcy.
On November 23, 2016, the Securities and Exchange Commission filed a civil action charging brothers Matthew Carl Griffin and William Daniel Griffin with fraudulently offering interests in two Texas partnerships.
The SEC alleges that, between November 2013 and July 2014, the Griffins, through their company, Payson Petroleum, Inc, conducted a fraudulent two-phase offering of interests in two Texas partnerships, raising $23 million from approximately 150 investors for the purpose of developing three oil and gas wells. The SEC further alleges that the Griffins misled investors about Payson’s promised participation in the program and about Payson’s compensation as the program’s sponsor and operator.
Specifically, the SEC alleges that the Griffins misrepresented to the investors: i) that Payson Petroleum, Inc. would contribute, up-front, 20% of the offering amount, or $5.4 million, and that this capital infusion would cover 20% of the cost of the wells; ii) that Payson Petroleum, Inc.’s consideration as program sponsor/operator/co-investor would be limited to 20% of any petroleum revenue generated by the wells; and iii) that Payson Petroleum, Inc. would cover any cost overages, beyond the estimated $24 million, in drilling and completing the wells. The SEC further alleges that these were misrepresentations because, in fact: i) Payson Petroleum, Inc. contributed no money to the offering and paid nothing toward the well costs; ii) Payson appropriated the entirety of the offering proceeds net of offering costs; and iii) Payson lacked the financial means to pay even the smallest cost overage.
Goodman & Nekvasil, P.A., has filed hundreds of cases against brokerage firms selling high-risk investments such as Payson Petroleum, Inc. and has recovered well over $180 million dollars on behalf of victimized investors. We allege in these cases that these investment recommendations were unsuitable for our clients in view of their financial situation, needs and investment objectives. All our cases are handled on a purely contingency fee basis.
You may have the right to recover your losses from the brokerage firm that sold Payson Petroleum, Inc. and other high-risk investments to you. We strongly recommend that you act quickly, however, because statutes of limitation can be short in securities cases.
Our firm has a unique, unparalleled track record. Kalju Nekvasil, Esq., has not lost a securities arbitration case on the merits in more than 13 years. We would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf. Finally, the filing of such a case should not affect your rights as a creditor in the Payson Petroleum, Inc. bankruptcy or your ownership of these investments in any way.
If you incurred losses on your investment in Payson Petroleum, Inc. and/or other high-risk investments and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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