Tag Archives: oil and gas fraud

Susan Pruitt Sentenced on Oil/Gas Fraud-Dallas, TX

November 2016-Dallas, Texas

Susan Gay Pruitt, 45, pleaded guilty to money laundering and theft of more than $200,000 and was sentenced to 22 years for selling phony oil and gas deals through her company Ember Development Solutions, LLC.

According to the Texas State Securities Board (TSSB), to gain credibility, Pruitt concocted an elaborate phony background telling victims she owned a valuable real estate portfolio and had inherited her father’s oil and gas business. She claimed to be investing in oil and gas deals in Grayson County in North Texas as well as in Oklahoma, Arkansas and Alabama.

Victims included elderly retirees and one victim who spent money from a child’s college fund.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

David K. Larson of Sonstone Trading Indicted for Wire Fraud

May 2016-Wichita, Kansas

The Department of Justice announced the indictment of David K. Larson, 70, of Hillsboro, Kansas, who is charged with one count of wire fraud for allegedly carrying out a $7.9 million oil and gas fraud scheme.

According to the announcement, Lawson owned and operated Sonstone Trading, LLC, a company that made a deal to sell 90 barrels a day of crude production to Parnon Gathering, Inc. Instead of delivering crude, Sonstone delivered raw gas oil, a product of substantially lesser value.

Lawson faces up to 20 years and a $250,000 fine if convicted.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

How to Recover Damages for Losses on Oil and Gas Investments Purchased from PTX Securities

Investors suffering losses on oil and gas investments purchased from PTX Securities of Plano, Texas, may be able to recover damages through FINRA arbitration.

PTX Securities (fka Balanced FInancial Securities) was sanctioned by FINRA in April 2016 for failure to perform adequate due diligence in connection with the sale of two private placement oil and gas offerings. See this for details on the sanction.

Call for a no charge consultation to learn about your 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Losses on Bradford Energy Capital ? How to Recover Damages.

March 21, 2016

The Bradford companies, including Bradford Exploration, Inc. , Bradford Energy, LLC and Bradford Energy Capital have been general partner of more than 40 limited partnerships which raised and invested hundreds of millions in various drilling operations, gas processing plants, pipelines and other energy related investments.

Oil and gas investments are generally considered to be risky investments and not generally suitable for elderly and retired persons. Many times investors are not fully warned by the selling broker of the risks associated with these type of investments.

With both oil and natural gas down dramatically in the past year, many investors in energy investments have suffered significant losses. Call to discuss how you may be able to recover damages on Bradford energy related investments.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Update March 2016: SEC Alert Warning Investors to Be Wary of Oil & Gas Investments

 MARCH 2016-After the dramatic collapse of oil prices in the past year, it is apparent that a 2013 SEC investor alert, which we discussed nearly three years ago, was something investor would have been wise to have heeded.

Brokers and financial advisors were on notice of the alerts from regulators when making investment recommendations to their investor customers.

OPTIONS FOR INVESTORS WITH OIL AND GAS INVESTMENT LOSSES.

If you suffered significant losses in oil and gas investments made upon the recommendation of your broker, you may be able to recover damages through FINRA arbitration. Call to speak to an experienced securities attorney. See contact information below.

ORIGINAL POST FROM MAY 2013

On May 2, 2013, the Securities & Exchange Commission (SEC) issued and investor alert on considerations investor should be aware of when investing in private oil &  gas offerings. Follow this link to access the entire document on the SEC website. This warning is much like a similar warning from the North American Securities Administrators Association in March 2013.

The SEC warns that investing in any private security offering contains unique risks, but oil and gas offerings have additional risks to consider. They list these common red flags often used to tout these investments to potential investors:

  • Sales pitches referring to recent news events like high oil or gas prices.
  • “Can’t miss” wells and “guaranteed” returns, including claims that major oil and gas companies are drilling nearby.
  • Abnormally high rates of return.
  • Unsolicited materials.
  • Sales tactics that pressure you to decide, like “limited” or “once-in-a-lifetime” opportunity.
  • Sales pitches touting new technology, especially if it relates to
    getting higher production out of low-producing wells (sometimes called
    “stripper” wells).
  • Salesperson claims to be an investor.
  • Being asked to sign documents acknowledging that the securities laws do not apply to the investment.

A listing of some of the oil & gas private placements recently offered to investors:

  • Adageo Energy
  • Alliance Petroleum Corporation
  • Alpha Energy
  • Atlas Energy L.P.
  • Aztec Oil & Gas
  • Black Diamond Energy
  • Bradford Energy
  • Catalyst Energy
  • Gulf Coast Rig & Equipment
  • Discovery Oil & Gas Partners
  • Mewbourne Energy
  • Noble Royalties
  • Penneco Drilling
  • Reef Oil & Gas Partnerships
  • Ridgewood Energy Fund
  • Sandridge Energy
  • South Central Region Private Limited Partnership
  • South Central
  • Texas Energy
  • Tidal Petroleum
  • U.S. Energy
  • Waveland Capital
  • Waveland Oil & Gas

If you believe you are a victim of stockbroker fraud or negligence, you may be able to recover losses through FINRA arbitration which is much quicker and less costly than litigation in court. Most cases are done on a contingent fee basis and are generally completed in a year or less.

If you have questions or complaints about losses in your brokerage account, call us for a no charge consultation.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870