According to Bloomberg, Black Diamond Energy Holdings, LLC, doing business as Maxxon Energy, provides crude oil transportation services for information and processing centers in North Dakota. The company was founded in 2012 and is headquartered in Killdeer, North Dakota. As of April 3, 2015, Black Diamond Energy Holdings, LLC operates as a subsidiary of Legend Oil and Gas, Ltd.
Black Diamond raises money with Reg D Private placements such as Black Diamond Energy Partners 2008-B LTD. The problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products - usually focusing on the income potential and tax benefits while downplaying the risks.
Private placements in natural gas are extremely risky and are not publicly traded. In addition, most private placements are exempt from registration with the Securities and Exchange Commission (SEC) and therefore lack the same regulatory oversight as other investment products.
Financial advisors and broker dealers have a duty to their clients to perform the necessary due diligence on an investment before offering it for sale to their clients and to ensure that any investment recommendation that is made is suitable in light of the client's age, investment experience, net worth, and investment objectives.To learn more about The White Law Group's investigation, see Black Diamond Energy Partners Investigation.
If you are concerned about your losses with Black Diamond Energy Partners and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.