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Sandlapper Securities Defrauds Investors on Saltwater Disposal Well Interests

Financial Fraud & Securities Attorneys Providing Recovery Options for Defrauded Sandlapper Securities Investors in Securities Arbitration’s

Sandlapper Securities is facing scrutiny and consequence from FINRA (the Financial Industry Regulatory Authority, Inc.), after creating a development company to fund investments for Saltwater Disposal wells on the backs of investors.

FINRA, the non profit organization that regulates the financial dealer-broker industry and is supported by Congress, is currently investigating Sandlapper Securities and the firms principals on severe allegations that include defrauding their own brokerage firms investors.

Are you are a client of Sandlapper Securities looking to recover investments through the FINRA arbitration process? Contact our firm today to learn more about your recovery options.

Small Brokerage Firm Creates Unfair Market

Sandlapper Securities is a small brokerage firm based in Greenville, SC with a total of 13 offices and a staff of registered representatives across the country.

According to FINRA’s broker check the firm has received a total of 3 regulatory actions. Sandlapper received two other regulatory events previous to the news of this recent scandal; a fine of $10 thousand dollars for failure to maintain a registered agent (the person or company by which complaint and service of process can be delivered to) and a fine of $2 thousand dollars for disallowed advertising.

However, it’s the third pending allegation against the firm and its executives, Trever Lee Gordon (CEO) and Jack Bixler (President), that is leaving the company in the wake of severe consequences.

sandlapper securities FINRA arbitration

Image: Reuters.com – FINRA initiated the allegations against Sandlapper Securities on 01/10/2017, the investigation into the violations of several rules and Federal Securities Laws is ongoing, but nearing end.

Our financial fraud and securities lawyers have litigated on behalf of defrauded investors against major companies across the United States. Contact us today at 855-566-3752 to speak with an experienced securities arbitration attorney.

Sandlapper Execs Create An Untrustworthy Environment

According to the allegations, in 2011 Mr. Gordon and Mr. Bixler created a fund, called the Tiburon Salt Water Reclamation Fund, to invest in Saltwater Disposal wells. These wells are used to process the saltwater “waste” that is extracted from porous rocks during the extraction of oil and natural gas.

Saltwater Disposal wells have become the primary method for disposing this toxic salt water waste that is too high in salt concentrations, hydrocarbons, and industrial compounds to be used for anything else. Making these wells a widely necessary and profitable industry. Other Saltwater Disposal well investment firms are offering investors the opportunities to buy into profitable Saltwater Disposal wells and receive residual monthly income, with some even boasting that their inventory of wells have a value exceeding $500 million.

A short time after their fund was created, Mr. Gordon and Mr. Bixler, whose duties on their LinkedIn profiles include strategic planning and business development, created a development company to manage Saltwater Disposal wells in Texas.

It was at this point the Sandlapper executives went onto create an environment of conflict. According to FINRA, Sandlapper “interposed their development company between the fund and the best available market for interest in two wells.”

Sandlappers Excessive Markups Fall on Fund Investors

The FINRA broker report regarding this news states the following about the recent Sandlapper regulatory event:

“Allegations consist of potential violations of various sections and rules of FINRA rules, NASD rules, and provisions of Federal Security Laws.”

Sandlapper executives, as well as 4 other broker-dealers of the firm, garnered these violations by reportedly using their development company to buy pieces of the wells, then charging fund investors mark ups of up to 270% in some cases. This resulted in many investors purchasing interests in the wells with markups between 160% and 270%, when they should have had access to purchase interest in the wells directly.

The complaint also alleges the firm intentionally borrowed money from the investors/fund to purchase interest in the wells, and then sold those very same interests back to investors at the excessively high prices and with no knowledge or appraisal of their actual value.

These actions went on from August 2011 to December 2013 and during that time a total of 170 investors purchased a total of $12.5 million dollars worth securities from the firm.

Investors Recovery Options for Sandlapper Securities

According to the complaint Sandlappers CEO, Trevor Gordon, “labored under numerous and obvious conflicts of interest.” For investors, a series of motives designed to line the pockets of greedy executives, may have cost them an upwards of $8 million dollars and opportunities to secure valuable and legitimate interests in the wells.

If you were a client of Sandlapper Securities and lost money on fraudulent Saltwater Disposal Well investments, you may be able to sue Sandlapper Securities within the FINRA arbitration processes.

Our financial fraud and securities lawyers have litigated on behalf of defrauded investors against major companies across the United States. Investors, contact our firm today to learn about your recovery options.

Put an experienced securities arbitration lawyer on your side. Contact us today!

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