Haslelkorn & Thibaut, P.A. continues to investigate the liability of the brokerage firms that recommended the FS Energy and Power Fund (FSEP) to investors. The company has recently reported a decline in value and we may be able to help you recover your financial losses.
The company’s website says: “Market events in 2020 have impacted financial markets and disrupted the U.S. and global economies, including energy markets. The FS Energy & Power Fund focuses on investments in debt and income-oriented securities held by US energy and energy companies. Their investment goal is to generate current income and long-term capital appreciation.”
For investors in FSEP, NAV per share is currently $3.25 and continues to show a serious downward trend that looks like it will continue into the near future. According to FS Energy, the purpose of this reduction is to ensure that the Company does not issue shares in FSEP at a price per share that is more than 25% above NAV per share. According to Central Trade and Transfer, the stock was sold in a private placement on the secondary market for $1.86 per share, indicating a significant loss for investors. The shares were offered at $1,000 per share (i.e.
Last year, on 25 March 2020, FSEP terminated its quarterly takeover offer and suspended its share buyback program, citing difficult market conditions due to the Coronavirus pandemic (COVID-19) and events related to crude oil production. The Company also suspended regular cash distributions to shareholders as of March 31, 2020.
The problem with alternative investment products (FSEPs) is that they involve a high level of risk. They are sold as unregistered securities and are not subject to the same regulatory oversight as traditional investment products such as stocks and bonds. Another problem is illiquidity, where it can be difficult to find a buyer if you are willing to sell the investment and you may suffer an investment loss. Haselkorn & Thibaut has represented numerous investors in lawsuits against their brokerage firms to recover losses from alternative investments such as FSEPs.
Brokerage firms selling alternative investments must perform appropriate due diligence before making any investment recommendation. They must ensure that the investment recommendation is suitable for the investor, taking into account age, risk tolerance, net assets, financial needs, and investment experience.
If you have suffered an investment loss through the FS Energy & Power Fund FSEP, Haselkorn & Thibaut can help you. We are a national investment fraud, securities arbitration, and investor protection law firm that has locations in Florida, Texas, New York, Arizona, and North Carolina. For more information about us and get a free consultation, call us at 800-856-3352.