McKinney Oil and Gas Fraud Lawyer
Gas and oil ventures are risky, high overhead, and investment-driven enterprises. They can also prove to be tremendously profitable, which is why fraudsters are often able to scam thousands of people out of millions of dollars.
Various scenarios in the Texas oil and gas industry can result in fraud, royalty disputes, and other misappropriation of assets. McKinney gas and oil fraud attorneys aggressively represent parties who have been wronged in conflicts over financial disputes with oil and gas companies, such as the underpayment or non-payment of royalties.
Texas Oil and Gas Scams
In Texas, oil and gas fraud cases have risen significantly in the last few years. Even though most companies involved in the oil and gas industry are trustworthy, there are still some operating fraudulently. Even some of the most well-known oil and gas companies do not act reputably.
In McKinney, landowners should be cautious when dealing with gas companies. However, if a gas company treated you unfairly, a McKinney oil and gas fraud lawyer could help you reclaim what you lost. An attorney with considerable experience recovering assets lost to oil and gas fraud may be able to help.
How Do Gas and Oil Companies Act Fraudulently?
Gas and oil are immensely profitable industries. Companies know this and are always trying to maximize those profits, sometimes even to the detriment of their clients and investors. That is why it is important individuals know how these companies can defy their consumers’ trust.
Some of the most common allegations of oil and gas fraud include:
- Breach of contract
- Failure to pay royalties
- Incorrect measuring of mineral values or volumes
- Underpayment of royalties.
To illustrate how serious this can be, in 2009, the multiple big-name oil companies in Texas had to pay $45.5 million to compensate for unpaid royalties between 1988 to 2008.
Warning Signs of Fraud
Landowners should be mindful and careful of the signs that could potentially warn of oil and gas fraud. If a person receives multiple unsolicited cold calls from a company offering services, the company could be operating fraudulently. If the company approaches them with a limited offer, that could also be a warning sign. Individuals should be wary of any promises of windfalls from investments in oil or gas or of any once-in-a-lifetime opportunities.
A Mckinney oil and gas fraud lawyer may recommend that landowners make sure that the name of a company on the Security Exchange Commission registry is the same name they are operating under, and that they have a descriptive name that denotes their work.
Before anyone works with or invests in an oil or gas company, they should make sure the company is in fact registered and has significant oil and gas experience. One of the best courses of action landowners can take to protect themselves from fraudulent oil and gas activity is to avoid making rushed decisions and not considering all key details.
Benefits of Speaking with a Fraud Attorney
If you believe you are dealing with fraudulent companies, speak to a Mckinney oil and gas fraud lawyer. The damages in these cases are frequently large and can involve great destruction to property and heavy economic losses. If an oil and gas company mistreated you, call today for a free consultation. An oil and gas fraud attorney can review your case and explain potential legal courses of action so that you may receive the compensation you deserve.