Retiree Recovers in FINRA Arbitration After Broker Recommended Breitburn Energy

A retired investor recovered over $20,000 in February 2017 in a FINRA arbitration involving the sale of Breitburn Energy Partners LP (“Breitburn”).

According to the FINRA award, the retiree alleged unsuitability, failure to supervise and breach of fiduciary duty among other claims.  The award was against Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691).

Breitburn is a publicly-traded, independent oil and gas master limited partnership (“MLP”).  Breitburn filed chapter 11 bankruptcy in May 2016 due to low oil prices.  Breitburn is one of many oil and gas companies that have declared bankruptcy in the last two years.

In November 2016, a group of Breitburn investors was selected to represent all investors’ interests, but investors still face significant risks in getting any of their money back.  Breitburn remains in bankruptcy, and many shareholders whose brokers and brokerage firms recommended they invest in Breitburn are in danger of getting pennies on the dollar for their investment or nothing at all.

If your broker or brokerage firm recommended you invest your money in Breitburn or any other oil and gas company, and you have sustained losses, you may be able to recover.

Many brokerage firms, brokers, and other registered representatives got caught up in rising oil and gas prices, placing related securities on a pedestal that could never be touched, believing oil and gas securities would always be profitable.

But oil and gas has always been risky and prone to wild swings in prices.  Nonetheless, these individuals and entities made unsuitable recommendations to invest in oil and gas investments to conservative investors without disclosing the riskiness of these securities.  Many times, financial advisors overconcentrated their customers’ money in oil and gas.

In these cases, you may still be able to recover your losses in Breitburn through FINRA arbitration.

If your broker or investment advisor advised you to invest in Breitburn or any other similarly situated company linked to the oil or gas or the energy sector, and you have incurred substantial losses, please contact us at for a no-cost case evaluation.   Cases are taken on a contingency fee basis, meaning no attorney’s fee is owed if there is no recovery.   Our lawyers have collectively represented hundreds of investors in FINRA or securities arbitration claims and recovered millions of dollars from large and regional brokerage firms.

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