SEC Charges Oil-Gas Companies in A $33 Million Scheme
From the Desk of Jim Eccleston at Eccleston Law LLC:
Two California oil-and-gas companies, their principal, and four sales associates have been accused by the SEC of a long-term fraudulent oil and gas scheme.
From 2007 to 2012, Team Resources, Inc. and Fossil Energy Corp. raised over $33 million from approximately 475 investors nationwide through eight unregistered offerings of oil-and-gas partnership interests. Kevin Albert Boyles controlled both companies, and used his sales staff of Philip Adam Dressner, Michael James Eppy, Andrew Stitt, and John M. Olivia to cold-call potential investors and mislead them into buying the partnership interests. In addition, Boyles paid large and undisclosed commissions to the salesmen — ranging from 25% to 35% — even though none of them was registered as a broker or associated with a registered broker-dealer. After raising sufficient funds from investors, Team Resources and Fossil Energy contracted with third parties to drill the wells, all of which failed to produce oil and gas as projection.
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