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FINRA FINES AND SANCTIONS PLANO BROKER DEALER PTX SECURITIES IN CONNECTION WITH THE SALE OF OIL & GAS PRIVATE PLACEMENTS

Robert Linkin

By Robert Linkin | June 23, 2016

Complex Litigation, Securities Litigation

FINRA has censured PTX Securities, LLC of Plano, Texas for its failure to conduct due diligence regarding oil and gas private placement offerings, and specifically, for failing to investigate the impact of an adverse money judgment against the issuer of these securities. PTX derives the majority of its revenue from its role as a managing wholesale broker-dealer for oil and gas private placements.

FINRA has repeatedly advised its member firms of their obligations as they relate to private placements, as well as warning investors of the risks of these largely illiquid investments. Earlier in the year FINRA noted that it would pay particular attention to the sale of private placements with respect to due diligence, suitability and disclosure during Broker-Dealer audits during 2016, noting that “communications used by firms concerning private placements have not reflected the significant risks of loss of principal and lack of liquidity associated with these investments. In recent years, a number of private placement securities connected to Ponzi schemes, such as Medical Capital and Provident Shale Royalties, have been the cause of significant investor losses.

Broker dealers such as PTX have a duty to conduct adequate due diligence on investment products such as the private placements sold by PTX before recommending or selling such investments to their customers. If you have investment losses related to a private placement sold to you by PTX, or any other broker-dealer, please contact Robert Linkin at Duggins Wren Mann & Romero to discuss your rights. Rob can be reached at (512) 744-9300 or at rlinkin@dwmrlaw.com.

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