There is money to be made in legitimate oil and gas opportunities in Texas, but unfortunately the industry also has its share of scammers. Con artists posing as brokers or salesmen lure investors with promises of huge returns on an oil and gas investment with little risk. It’s wise to heed the old adage, “If it’s too good to be true, it probably is.”
A highly skilled salesman will attempt to pressure you into making an immediate decision on the investment. They do this to play on your emotions and make you believe you could miss out on a “limited-time” opportunity. These pressure tactics are a sign you should take your time and do your research before investing your hard-earned money.
Scam artists often contact investors through e-mails or phone calls with an "up-and-coming" opportunity to become involved in an oil and gas limited partnership. They often try to make it seem legitimate by telling the investor a large oil or gas company has already invested in the venture.
They may even provide promotional materials that include fake reports by “expert geologists” about the estimated production of oil and gas. Sometimes the alleged “drilling site” they mention does not even exist. The salesman just keeps up the act long enough for you to hand over your money.
The oil and gas investor is sometimes left waiting for the promised windfall of money, while con artists are enjoying an extravagant lifestyle on the investor’s dime.
It can be very difficult to determine if an oil and gas investment opportunity is actually a scam. That’s why it’s always a good idea to speak to speak to an oil and gas fraud attorney.
We will research your potential investments and provide our findings to assist you in making a decision. A well-informed decision can prevent becoming a victim of an oil and gas investment scam.
We are here to help.
Mark A. Alexander, P.C.