Ridgewood Engery Update November 20, 2016
Ridgewood Energy Fund Y
The Ridgewood Energy Funds have cost investors millions of dollars. 13% of the amount invested in a Ridgewood Fund went to fees—right off the top. Some of this went to brokers and the brokerage firms that approved Ridgewood Energy Funds for sale. Unfortunately, they have declined in value as oil dropped. However, their value dropped more than the price of oil, in most cases, given the added burden of the internal fees. These average an additional 2-3% per year.
Ridgewood Energy Fund Y is a good example of why these speculative investments should have been sold only to high net worth, knowledgeable investors who wanted to speculate. Ridgewood Energy Y Fund raised over $42 million dollars from investors. However, as of the end of 2013, almost 25% of the amount raised was paid as management fees to Ridgewood and its affiliates. Of the 42 million dollars, fees were over $9.6 million dollars.
While the manager of Ridgewood Energy Y Fund made a lot of money, the investors lost money. The distributions from the fund have dropped, so they no longer make sense for someone who needs supplemental income. AND, investors who want to move their money to a safer, better-yielding investment cannot do that. There is no market for Ridgewood Energy Y fund. If you were sold Ridgewood Energy Y fund and are interested in pursuing your losses, please contact us.
Ridgewood Energy Update August 2016
Ridgewood Energy’s direct placement programs have cost investors billions of dollars. Ridgewood Energy is an investment company that has established an “alphabet soup” of Energy Funds—Ridgewood Energy A, B, C, etc. All Ridgewood Energy funds have very high upfront fees, an annual management fee of 2.5%, and many conflicts of interests. Its subsidiaries also receive money from defrauded Ridgewood investors every year. What is the result? While Ridgewood energy investors have lost money, investors in simply oil and gas mutual funds have made money.
Ridgewood Energy has raised more than two billion dollars from investors. Its funds have been sold by brokers and investment advisors to customers by falsely stating that the fund was safe and would provide dependable income. Many of the investors had no business being in highly speculative and illiquid drilling partnerships.
These investments have consistently underperformed other investments, even other investments in publicly traded oil and gas companies. For example, Ridgewood Energy Y raised almost $100,000,000 in 2008 and 2009. It received an upfront fee of 16.5%, which it shared with the brokerage firms who sold it to investors. It has returned about one third of the amount invested by way of distributions. However, its value has plummeted. Its recent distribution history is dismal. People who bought it because their broker told them it would pay a nice, steady distribution, instead find themselves stuck with a certificate they can’t sell that is no longer paying them income.
If your broker sold you Ridgewood Energy funds in the last eight years, and you are looking for compensation, please contact us as we are forming groups of investors in Ridgewood Energy X, Ridgewood Energy Y, Ridgewood Energy A-1, Ridgewood Energy B-1,Ridgewood Energy V, Ridgewood Energy W, Ridgewood Bluewater Oil, Ridgewood Energy Bluewater Oil II and Ridgewood Bluewater Oil III.
Ridgewood Energy Fraud Information
Ridgewood Energy funds are approved only for accredited investors. This law firm represents investors who have losses in Ridgewood Energy. We allege these investments were: 1) high risk; 2) unsuitable for investors wanting safe income; and 3) that the brokerage firms failed to conduct the required due diligence as to Ridgewood Energy investments.
We represent groups of investors, and are putting together class actions and group arbitrations for investors in these Ridgewood Energy programs:
Ridgewood Energy Funds S-Z
Ridgewood Energy Funds AA – EE
Ridgewood Energy Bluewater Institutional Fund, LLC
Ridgewood Energy Bluewater Oil Fund II, LLC
Ridgewood Energy Bluewater Oil Fund III, LLC
Ridgewood Energy Bluewater Oil Fund IV, LLC
Ridgewood Energy Oil & Gas Fund, L.P.
Ridgewood Private Equity Partners Energy Access Fund LLC
If you invested in a Ridgewood Energy offering and would like to discuss your loss recovery options, please contact us for a free consultation.
Additional Ridgewood Energy Information
Ridgewood Energy has lost investors hundreds of millions of dollars. While investors have losses, the brokers who sold Ridgewood Energy investments made high commissions. Because of the high commissions, Ridgewood Energy raised over $1 billion over the last decade. Brokers who sold these illiquid, high commission and speculative products are having to repay investors if these investments were not suitable for them.
Ridgewood Energy charges upfront fees of 15-16%. So, of every dollar invested, only 84 or 85 cents actually went into an investment fund. In addition, Ridgewood Energy charges all investors a 2.5% annual management fee AND, Ridgewood Energy keeps 15% of any distributions—although it never invested in the direct placement program. That isn’t even all the fees: in addition, Ridgewood Energy subsidiaries charge Ridgewood Energy high fees every year for leasing, managing and administering the investments. No wonder that the only people who have made money in Ridgewood Energy are brokers who sold it and Ridgewood Energy.