On March 19, 2018, the Securities and Exchange Commission (SEC) announced it recently charged oil-and-gas company Americrude, Inc. and three of its executives with defrauding investors.
The SEC charged in its complaint filed in the Northern District of Texas federal district court that Americrude’s CEO and president used cold calls and high-pressured sales pitches to inappropriately solicit investment in Americrude’s securities offerings. The defendants purportedly misrepresented Americrude’s past financial performance, and its CEO allegedly used an alias to conceal his felony conviction for theft.
According to the SEC, the executives misappropriated more than $196,000 from Americrude’s investors.
Options for Investors to Recover Losses
Marquardt Law Office LLC is interested in speaking with investors who were recommended Americrude securities by their brokers or investment advisors.
Rules and regulations require investment brokers and advisors to recommend only suitable investment products and strategies to their customers. This requires brokers and advisors to be familiar with their customers and their investment needs and objectives. This also requires brokers and advisors to be knowledgeable of an investment like Americrude and ensure it is suitable to a particular customer.
Additionally, rules and regulations require brokerage firms to closely monitor and supervise their brokers and advisors to ensure they recommend only suitable investments to their customers.
When brokers and firms breach these duties, their customers have a right to pursue claims for their losses through FINRA arbitration claims.
If you believe Americrude may have been unsuitably recommended to you, contact Marquardt Law Office LLC to speak with a securities attorney for free evaluation.
Marquardt Law Office LLC is a securities law firm located in Chicago, IL that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence.
