Haselkorn & Thibaut is investigating brokerage firms over probable securities fraud claims concerning investments in Genesis Energy LP (NYSE: GEL). Over the past 12 months, the market value of many master limited partnerships (MLP)s by oil and gas companies has dived. Genesis Energy LP has fallen 79% in the last year, and this is terrible news for investors.
Investors who are facing losses from investments in MLPs such as Genesis Energy can benefit from a free consultation with an experienced securities attorney at Haselkorn & Thibaut.
A Master Limited Partnership (MLP) is a publicly-traded partnership that attracts tax benefits provided to a limited partnership. It also possesses the liquidity of publicly-traded security. MLPs are bound by law to obtain 90% of their cash flow from qualifying sources such as real estate, natural resources, and commodities.
The complex and risky nature of these MLP investments means that they are suitable only for wealthy and experienced investors, both retail and institutional.
What is Genesis Energy – GEL Stock MLP
Genesis Energy, founded in 1996, operates in the intermediate segment of the crude oil and natural gas industry. The company’s offshore pipeline transportation segment is engaged in offshore crude oil and natural gas pipeline transportation and handling operations, and deepwater pipeline service in the southern area of the Gulf of Mexico.
This division owns interests in approximately 1,422 miles of offshore crude oil pipelines in the Gulf of Mexico. GEL’s Sodium Minerals and Sulfur Services segment provides sulfur extraction services for refining operations; and operates storage and transportation assets. This division provides services to 10 refining operations; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies dedicated to the extraction of base metals.
Its onshore facilities and transportation division provides onshore facilities and transportation services to Gulf Coast refineries and crude oil producers through the purchase, transportation, storage, blending, and marketing of crude oil and refined products. It operates a set of approximately 200 trucks, 300 trailers, 404 wagons, and terminals and tanks with 4.6 million barrels of storage capacity at several locations along the Gulf Coast. This division also transports crude oil and carbon dioxide (CO2).
GEL has five onshore crude oil pipeline systems with approximately 450 miles of pipeline located primarily in Florida, Texa, Alabama, Louisiana, and Mississippi; and 2 CO2 pipes with about 270 miles of pipe. Its shipping segment offers water transportation of petroleum products and crude oil in North America. This segment has a fleet of 91 barges with a combined transport capacity of 3.2 million barrels; and 42 push/tow boats. In addition, Genesis produces natural soda ash.
Recover Losses From GEL Stock MLP
Haselkorn & Thibaut can help individuals who may have suffered financial losses from investing in Genesis Energy. FINRA arbitration claims against broker-dealers that made the recommendations for such investments is the way out.
Brokerage companies that sell MLPs are expected to pitch these risky investments only to those investors who know what they’re getting into. The broker-dealers must assess the MLPs for the chances of success and evaluate a client’s profile based on age, assets, experience, and desired objectives. If a brokerage firm does not execute the necessary due diligence and recommends MLPs without proper background checks of potential investors, then it can attract a FINRA arbitration claim and be held accountable for the losses incurred.
During its investigations, The Haselkorn & Thibaut noticed that frequently broker-dealers add MLPs in the investment portfolios of their clients. When doing so, they hold back on information that may negatively influence an investor’s decision against the MLPs. Read another case at: Viper Energy Partners LP MLP Investigation
Contact us today for a free consultation and let us help you review your options to recover losses. Call toll free at 1-800-856-3352.