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275. The Revolutionary World of Oil & Gas Investing with Troy Eckard

Tax Smart Real Estate Investors Podcast

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How to Avoid Investment Fraud in Oil and Gas Ventures

It is crucial to prioritize researching the 'who' behind any investment opportunity in oil and gas ventures to avoid potential fraud. Checking licenses and registrations of managers and owners, searching for their names on SEC and FINRA sites, and looking them up in databases for any criminal records are necessary steps. Additionally, examining the track record and expertise of the individuals involved in the venture is essential. Investors should demand concrete numbers, ask for API numbers of wells, review AFE budgets, and insist on written answers to key questions to prevent falling for fraudulent schemes. Lack of diligence can lead to significant financial losses as illustrated by numerous cases of fraud in oil and gas ventures.

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