Soreide Law Group is representing investors who sustained losses in Shale Royalties and/or Provident Royalties sold to them by their brokerage firm, and is filing securities arbitration claims with the Financial Industry Regulatory Authority ("FINRA"). We are also investigating the sales practices and due diligence of other FINRA brokerage firms who solicited customers to purchase Provident Royalties and/or Shale Royalties investments. The firms we are currently investigating include but are not limited too: pursuing claims against the selling brokerage firms for negligence, negligent misrepresentations and omissions, and breach of fiduciary duty. Our investigation includes potential claims against brokerage firms such as Securities America, National Securities Corporation, Wedbush Morgan, Capital Financial Services, Workman Securities, QA3 Financial Corporation and GunnAllen Financial.

In July 2009, the Securities and Exchange Commission ("SEC") filed fraud charges against Provident Royalties, LLC, in connection with the sale of $485 million in preferred stock and limited partnership offerings in gas and oil deals to at least 7,700 investors. The SEC's Complaint named Paul R. Melbye, Brendan Coughlin and Henry Harrison, all founders and managers of Provident Royalties, as defendants, as well as brokerage firm Provident Asset Management, LLC and 21 affiliates that offered and sold securities. These affiliates include several Shale Royalties corporations. According to Ken Israel, Director of the SEC's Salt Lake Regional Office, "Provident sold ostensibly safe securities such as preferred stock to thousands of investors. But it was actually operating a Ponzi-like shell game in which assets were shuttled from one entity to another and investors were paid 'returns' from whatever money was available usually that of the most recent investors."

FINRA rules provide that brokerage firms have an obligation to make suitable recommendations to their customers and to conduct adequate due diligence into the investment. However, many brokerage firms failed to perform adequate due diligence before recommending Provident Royalties and/or Shale Royalties to their customers. As a result, numerous investors have sustained significant economic damages.

According to the SEC civil complaint, Provident allegedly made a series of fraudulent offerings of limited partnership interests and preferred stock from at least June 2006 through January 2009 and persuaded about 7,700 US investors to invest half a billion dollars. The Texas-based firm allegedly promised yearly returns of more than 18% and misrepresented the way the funds were going to be used. The SEC is also accusing broker-dealer Provident Asset Management, LLC of making direct retail securities sales, as well as soliciting unaffiliated retail broker-dealers to submit placement agreements for each offering.

If you invested money in Shale Royalties or Provident Royalties, call the securities law firm of Soreide Law Group, at 888-760-6552. Located in Fort Lauderdale, Florida but representing investors NATIONWIDE. Call now for a free consultation. No Fee if No Recovery.