Investors who purchased shares in the Atlas Growth Partners LP private placement may be facing devastating financial consequences, with reports indicating potential losses approaching the total value of their principal. Although the company raised approximately $230 million from investors, it later disclosed net assets of less than $4 million, suggesting that investors may have lost up to 99% of their money.
Current investigations are focused on whether brokerage firms and financial advisors fulfilled their legal obligations when recommending this high-risk oil and gas investment to retail clients. Atlas Growth Partners SEC filings have revealed severe liquidity crises, missed reporting deadlines, and warnings about the company’s ability to continue operating. If you have suffered losses in this investment, you may have grounds to hold your financial advisor or brokerage firm accountable.
If you were recommended an investment you didn’t fully understand or that didn’t fit your portfolio, you’re not alone—the securities fraud lawyers at Meyer Wilson Werning can help. Reach out today for a free and confidential consultation to discuss your next steps with us.
What Do Atlas Growth Partners SEC Filings Reveal About Financial Health?
Atlas Growth Partners LP was formed in 2013 to engage in oil and natural gas operations, primarily in the Eagle Ford Shale. However, the company’s financial trajectory has been alarming for investors who were promised stability or growth.
According to SEC filings, the company’s financial health deteriorated significantly over time:
- Asset Collapse: Despite raising hundreds of millions of dollars, the company reported net assets of under $4 million as of March 31, 2021.
- “Going Concern” Warning: In its Form 10-K for the fiscal year ended December 31, 2020, Atlas Growth stated it faced “significant risks and uncertainties related to our inability to satisfy our current liabilities.” The filing warned that if liabilities were called, the company would lack sufficient liquidity to repay them, raising “substantial doubt” about its ability to continue as a going concern.
- Termination of Registration: On December 21, 2021, the company filed a Form 15 with the SEC to terminate the registration of its securities. This is a step often taken by companies in distress or those seeking to avoid the laborious reporting requirements of public trading.
- Missed Reports: These disclosures followed a period where the company failed to submit several required reports to the Securities and Exchange Commission (SEC), leaving investors in the dark during critical periods of value erosion.
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Why Are Brokers Being Investigated for Recommending Atlas Growth Partners?
The collapse of Atlas Growth Partners has triggered scrutiny regarding the sales practices of the broker-dealers who distributed the offering. Private placements in the oil and gas sector are often speculative, illiquid, and unsuitable for conservative investors or retirees.
Allegations suggest that many financial advisors may have overlooked these risks in favor of high commissions. Filings indicate that the broker-dealers involved in selling the offering earned over $50 million in collective sales commissions. This creates a potential conflict of interest, where the financial incentive to sell the product may have outweighed the duty to act in the client’s best interest.
Regulatory bodies are taking notice. On December 3, 2025, FINRA filed a complaint against Spartan Capital Securities, alleging misrepresentations and failures to disclose material facts regarding these private placements. This reinforces the broader concern that firms may have failed to conduct adequate due diligence or ensure that Atlas Growth Partners was a suitable recommendation for their clients.
Which Brokerage Firms Sold Atlas Growth Partners LP?
A wide network of brokerage firms participated in selling this offering to retail investors. Below is a partial list of firms identified in SEC filings (Form D) that may have sold Atlas Growth Partners to their customers.
Note: This list is not exhaustive and implies only that these firms were authorized to sell the offering, not necessarily that every sale was improper.
- LPL Financial LLC
- Cambridge Investment Research, Inc.
- Lincoln Financial Advisors Corporation
- Royal Alliance Associates, Inc.
- Cetera Advisor Networks LLC
- Woodbury Financial Services, Inc.
- Kovack Securities, Inc.
- Crown Capital Securities, L.P.
- Sagepoint Financial, Inc.
- Centaurus Financial, Inc.
- Triad Advisors, LLC
- Voya Financial Advisors, Inc.
- Kalos Capital, Inc.
- Arete Wealth Management, LLC
- Dempsey Lord Smith, LLC
- Coastal Equities, Inc.
- First Allied Securities, Inc.
- Independent Financial Group, LLC
- Peak Brokerage Services, LLC
- Saxony Securities, Inc.
- Western International Securities, Inc.
- Ausdal Financial Partners, Inc.
- American Trust Investment Services, Inc.
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What Are the Red Flags of Misconduct in Oil and Gas Investments?
Investors often do not realize they have been the victim of misconduct until significant losses occur. However, there are specific signs that may indicate your financial advisor failed in their duties regarding Atlas Growth Partners.
Important Points to watch for include:
- Unsuitability: You were a conservative investor or retiree, yet your advisor recommended a high-risk, speculative oil and gas partnership.
- Lack of Liquidity: You were not adequately warned that your money would be “locked up” and inaccessible for a long period.
- Overconcentration: A significant portion of your net worth was placed into this single investment or sector.
- Unauthorized Trading: Transactions were made in your account without your specific permission.
- Misrepresentation: The investment was sold to you as “safe,” “guaranteed,” or “low-risk,” contradicting the warnings found in the Atlas Growth Partners SEC filings.
- Communication Failures: Your broker is not returning calls, or you have received unexpected communications from branch managers regarding your portfolio.
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How Can Investors Recover Losses Through Arbitration?
If your financial advisor recommended Atlas Growth Partners and you suffered losses, you may be able to recover your funds through arbitration.
Brokerage firms have a legal duty to perform due diligence on the products they sell and to ensure those products are suitable for each client’s specific financial situation. When they fail to do so—whether through negligence, failure to supervise, or misrepresentation—they can be held liable for the resulting damages.
Arbitration is the standard method for resolving disputes between investors and brokerage firms. It is generally faster and more cost-effective than traditional court litigation. An experienced attorney can help you gather the necessary evidence, such as account statements and correspondence, to build a strong case proving that the firm failed to protect your interests.
How Meyer Wilson Werning Assists Victims of Investment Fraud
The devastating losses associated with Atlas Growth Partners highlight the dangers of unsuitable recommendations in the private placement market. When brokers prioritize commissions over their clients’ financial security, the results can be catastrophic for retirement plans.
At Meyer Wilson Werning, we represent investors nationwide who have been harmed by broker misconduct and investment fraud. We have the resources and experience to take on large brokerage firms and fight for the compensation you deserve.
If you lost money in Atlas Growth Partners, contact us today for a free and confidential consultation. Let us review your case and help you understand your legal options for recovery.
Frequently Asked Questions
What happened to the money invested in Atlas Growth Partners?
Filings indicate that while the company raised approximately $230 million, net assets dropped to under $4 million by 2021. Much of the capital was reportedly lost due to operational costs, market conditions, and the payment of significant commissions to brokers.
Can I sue my broker for recommending Atlas Growth Partners?
Yes, if the recommendation was unsuitable for your financial profile or if the broker failed to disclose material risks. Most of these claims are handled through binding arbitration rather than a lawsuit in civil court.
Why are there concerns about the commissions paid to brokers?
Broker-dealers earned over $50 million in commissions for selling Atlas Growth Partners. High commissions can create a conflict of interest, incentivizing advisors to recommend the product regardless of whether it fits the client’s needs.
What should I do if I see “going concern” warnings in SEC filings?
A “going concern” warning is a serious red flag indicating a company may not have enough money to survive. If you see this regarding an investment your advisor recommended as “safe,” you should contact a securities attorney immediately to evaluate potential claims for misrepresentation.
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