Atlas Resource is an oil and gas exploration company which has raised over a billion dollars from investors under the names “Atlas America” and “Atlas Resources”. Unfortunately, most of these investors in more recent funds have suffered large losses. Why? Because the amount of money taken out of the investment for commissions is very high, affiliated companies receive high ongoing fees, and oil and gas is a speculative and cyclical business. Brokers liking the high commissions have sold Atlas Resource direct participation programs to too many people as being safe, income-generating investments. In fact, they are very speculative, very illiquid investments that are designed only for the ultra-wealthy with an appetite for risk.
Atlas Resource has sponsored over 35 direct participation programs since 2000. However, investors have been paid back their entire initial investment in only one of the funds. This has been true during high and low oil prices. AND, these Atlas Resource investments cannot be sold. There is no market for them. They are not listed on any stock exchange, so if they no longer provide income, they cannot even be salvaged for a fraction of the amount invested.
Therefore, investors who have been sold Atlas Resource Public Series 9-30 are filing FINRA arbitrations against the brokerage firms who sold these to them because they have been misrepresented to them as safe, low risk, income-generating investments. Some investors have been sold more than one of these series, and so have an overly concentrated position in oil drilling.
If you own one of the Atlas America or Atlas Resources Public Series and believe it was misrepresented to you, please complete the form below and contact us.