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



Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.


August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.

August 10, 2022
UBS Wealth Group’s Legal Costs Skyrocket in Q2

UBS Wealth’s litigation expenses have substantially spiked in the second quarter as the firm has faced a host of investor complaints and regulatory probes into UBS’ volatile Yield Enhancement Strategy (YES).

August 9, 2022
UBS Wealth Relying on Lending as Client Assets Dip

UBS Wealth Management is relying on loan growth and increasing interest rates amidst a quarter that the company has categorized as “one of the most challenging periods for investors in the last 10 years”, according to UBS CEO Ralph Hamers.