Investor Lawyers Blog
Stock fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment in a Layton Energy Wharton LP product. As a Texas-based energy company, Layton Energy Wharton offers various private placements, one of which is Layton Energy Wharton LP. Launched in 2007, this investment’s aim was to raise $10,000,000 for the purpose of acquiring interests in oil and gas deals, according to its filing with the Securities and Exchange Commission.
According to securities arbitration lawyers, because private placements like Layton Energy Wharton LP are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors. Private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission.
FINRA Executive Vice President and Chief of Enforcement, Brad Bennett, has stated that, “FINRA continues to look closely at sales of private placements to determine whether the selling firms are fulfilling their responsibilities to customers.”