On August 4th, 2014, the Securities & Exchange Commission “SEC” charged Houston American Energy Corp. ( NYSE symbol “HUSA”) and its President and CEO John F. Terwilliger, Jr. with making fraudulent claims about the company’s oil reserves. Terwilliger resides in Houston, Texas and Palm Beach, Florida.
Also charged is Undiscovered Equities Inc. and its President Kevin T. McKnight, both of Boca Raton, FL. Houston American hired McKnight’s company in November 2009 to ‘increase the investment community’s awareness of Houston American”.
According to the SEC press release, “Terwilliger and Houston American misled investors by wildly exaggerating the extent and nature of their oil and gas holdings” and “used a cadre of third parties to publicize and bolster their misleading claims” according to Gerald Hodgkins of SEC enforcement.
McKnight and his company were paid by Houston American to disseminate its fraudulent claims about an oil and gas concession in Columbia. In late 2009-2010, Houston American raised $13 million in a public offering and saw share prices skyrocket from $5 to over $20. Contrary to representations made to the public, after drilling multiple dry holes, Houston American withdrew from the operation in early 2013 without recovering any oil.
If you suffered losses as a result of investing in Houston American (HUSA) contact us to discuss your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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