Texas Oil & Gas Scams
| November 18, 2019
I’ve been offered an exclusive investment opportunity in oil and gas in Texas. How can I tell if it’s a scam?
It can be very difficult to tell if an investment opportunity is an investment scam, especially when it involves a current news item or popular investing avenue. In recent years, the rising price of fuel has many investors interested in making a little extra by putting cash into oil and gas investments. However, investors should be wary. Fraudsters are adept at playing on investors’ fears – and the poor economy and rising fuel costs are definitely scary. As you see losses in your “safe” investments, you may be tempted to jump on an offer on an oil well or gas investment that promises high returns without doing your research first.
Although not every oil or gas investment is a scam, your use of the word “exclusive” is a little concerning. A popular tactic being used by fraudsters is the “exclusive” or “secret” investment opportunity. If you are being offered a legitimate investment opportunity, it is extremely unlikely that you would need to keep it a secret – and the request to do so is a major “red flag.” Although we do not know the specifics of the opportunity you’re interested in, we urge you to check into the background of the company or advisor you are working with.
Additionally, look for the other major “red flags” of oil and gas investment fraud, including:
- High returns with little to no risk.
- Pressure to invest right away.
- “Guaranteed” returns.
- Any opportunity that comes to you via “cold call” or a phone call from a company you have not dealt with in the past.
- Any opportunity that comes via unsolicited e-mail or through a social media site, like Facebook.
If you have questions about oil and gas investment fraud, stock scams, Ponzi schemes, or securities fraud, speak with one of our highly qualified investment fraud attorneys today. We represent investors nationwide in stockbroker mediation, arbitration, and litigation, and we look forward to discussing your situation in a completely free, no-obligation consultation.
For more on oil downturns and investment fraud, watch the video below: