SEC Files Suit Over $17M APEG Energy Fund

Posted on March 15th, 2021 at 3:05 PM

From the Desk of Jim Eccleston at Eccleston Law LLC:

Two Texas-based advisors allegedly misled investors regarding their background, experience and fees that they would collect, according to a recent SEC complaint. In pocketing nearly $2.7 million of investor funds, the SEC stated that the advisors, "effectively siphoned off the fund's capital by causing the fund to overpay for its investments in an effort to pay themselves whatever they wanted.” 

The fund in question, APEG Energy LP, initially offered at least 115 investors a guaranteed, high rate of return. According to the SEC filing, the fund promised that investments in oil and gas were hedged against market fluctuations and that returns of 25% were guaranteed. However, there existed no hedge position and no way to guarantee the revenue. Further, the Texas-based advisors specified to investors that they required only a 2% management fee. According to the SEC, the advisors purchased oil and gas assets from four unnamed companies and were compensated at a much higher rate than the straight fee that was promised.

Eccleston Law LLC represents financial advisors nationwide.  Feel free to contact us to discuss your situation.

Tags: eccleston, eccleston law, SEC, energy fund, filed suit

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

February 14, 2025
Jefferies Financial Group Dismisses Miami Advisory Team Amid Alleged Misconduct

Jefferies Financial Group recently terminated a team of Miami-based wealth advisors following allegations of improper money transfers and the use of unauthorized communication methods to conceal the activity.

February 13, 2025
FINRA Panel Denies J.P. Morgan's $39.7 Million Claim Against Former Advisor

A FINRA arbitration panel recently rejected J.P. Morgan Securities’ bid to recover $39.7 million in damages from Edward Turley, a former financial advisor whose alleged
misconduct led the firm to incur significant settlement costs.

February 12, 2025
Edward Jones Advisor Barred by FINRA Over Allegations of Unauthorized Account Changes

FINRA has barred Gwendolyn J. Hayes, a former Edward Jones advisor in Oregon after allegations surfaced that she altered client account information without authorization.