SEC Charges Texas Company and Its President in Oil-And-Gas Scheme

Posted on November 21st, 2016 at 12:13 PM
SEC Charges Texas Company and Its President in Oil-And-Gas Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC filed charges on October 24 against Southlake Resources Group, LLC, its president, Cody M. Winters, and its vice president, Nicholas R. Hamilton. According to the SEC’s complaint, Mr. Winters raised approximately $5.2 million from more than 70 investors in 12 fraudulent oil-and-gas joint ventures from approximately June 2010 through September 2014. The SEC alleges that Mr. Winters and Southlake provided investors with documents that misrepresented the use of the offering proceeds, contained unsubstantiated projections regarding future oil production and revenue, and overstated expected well costs. Mr. Winters also sold joint-venture interests to certain investors at an undisclosed discount and used offering proceeds to acquire working interest for the company itself.

Without admitting or denying the allegations in the complaint, Southlake, Mr. Winters and Mr. Hamilton settled charges with the SEC. Along with consenting to the entry of permanent injunctions for violating securities-registration and anti-fraud provisions of the federal securities laws, the Defendants have agreed to pay a disgorgement totaling $5,235,650, plus a prejudgment interest of $285,761.70. Mr. Winters and Southlake also agreed to pay civil penalties of $160,000 each. Mr. Hamilton agreed to pay a $50,000 civil penalty. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial advisors including breakaway broker servicesemployment mattersstrategic consulting and counselingbroker litigation and arbitration,whistleblower actions, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.  

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC, SEC, Southlake Resources Group LLC, Cody M. Winters, Nicholas R. Hamilton, investors, civil penalties, Defendants, securities-registration, anti-fraud provisions,

Return to Archive



You guys are good!

Mike L.


October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.