Archive for the ‘Oil and Gas’ Category

3 Men Accused of Running a $485 Million Oil and Gas Ponzi Scheme

Monday, July 13th, 2009

The downfall of the U.S. economy has led to an increase in securities scams.  Texas-based oil and gas scams always flourish in such times.  Scamsters have a tendency to go after what they know, and in Texas, they know oil.  The Securities and Exchange Commission (SEC) filed civil fraud charges against 3 Texas men, Paul R. Melbye, Brendan Coughlin, and Henry Harrison, for allegedly orchestrating a $485 million Ponzi scheme through their company, Provident Royalties LLC. (more…)

Don’t Wait Until Checks Bounce

Wednesday, July 1st, 2009

An article in The Rochester Democrat and Chronicle, by Gary Craig, brings to light another alleged oil and gas scam that raised more than $16 million from investors.  According to court documents, Ashvin Zaveri and his company Zaveri Oil & Gas, Ltd, are under investigation for defrauding investors, but no charges have been filed against Zaveri at this time.  (more…)

SEC Halts Alleged Oil and Gas Scam

Thursday, March 26th, 2009

On the February 24, 2009 episode of Consuelo Mack Wealthtrack, I talked about the proliferation of oil and gas scams.  As I expected, the SEC has found what they allege to be such a scam, and closed it down.  The SEC has charged that “Clement Ejedawe, a/k/a Clement Chad and his companies, Innova Energy LLC and Innova Leasing and Management, raised at least $1.3 million from over 30 investors by promising guaranteed returns on working interests in oil and gas leases or oil and gas drilling equipment.”  Specifically: (more…)

Where Is Your Money?

Monday, December 29th, 2008

The Securities and Exchange Commission (SEC) has filed a civil action against Star Explorations, Inc. and its principal, James T. Gurgainers, for allegedly conducting a fraudulent oil and gas scam.  According to the SEC, Gurgainers raised over $12 million from over 160 investors between December 2005 and May 2008. (more…)

SEC Stops Offspring of Earlier Scam

Tuesday, September 30th, 2008

The U.S. Securities and Exchange Commission (”SEC”) has charged Delta Onshore Management, LLC, Jerry P. Jackson, a principal of Delta Management, and Peter J. Brooks, Jason Hertz, and Daniel Cohen, all of whom were unlicensed salesmen of the Delta Venture.  According to the SEC the defendants raised $2.8 million from 50 investors nationwide in what the SEC described as an “off-shoot of a previously filed massive securities oil-and-gas related offering fraud case, SEC v. Michael J. McNaul, II, et al., pending in the United States District Court for the District of Kansas, Wichita Division. (more…)

SEC Halts Colorado Oil and Gas Fraud

Friday, September 5th, 2008

Things have come to a pretty pass when we get excited about paying less than $4 per gallon for gasoline.  Scam artists know that every American who drives pays attention to the price at the pump.  Scam artists also know that they can use that awareness to sell oil and gas scams.  The SEC has charged Donald H. Allen, a resident of Colorado Springs, Colorado, and his two wholly-owned companies, H&M Petroleum Corporation (“H&M”) and American Energy Resources Corporation (“AER”) with doing just that.  The SEC’s press release reads in part as follows: (more…)

Father/Daughter Scamsters Plead Guilty in Oil Well Scheme

Tuesday, July 29th, 2008

Len Wells of the Evansville Courier & Press reports that  Carl E. Royse of Fairfield, Ill., and his daughter, Jeanette Riley of Olney, Illinois have pleaded guilty to scamming investors out of approximately $4 million in connection with a scam structured around bogus oil wells.  Wells reports: (more…)

Scam Artists Thrive in Hard Times

Thursday, June 26th, 2008

Andrew Leckey of Tribune New Services has written an article calling attention to a phenomenon that Investor’s Watchblog has been warning investor’s about for that past twelve months - scam artists follow the headlines and craft sales pitches designed to take advantage of them. Read Leckey’s article for a good description of the types of scams that regulators have uncovered lately.

Another Oil and Gas Fraud

Friday, June 13th, 2008

Oil and gas scams will be thicker than bugs on a bumper in the months to come.  Investor’s Watchblog has posted on several already.  The SEC has found and put a stop to another one - a massive $150 million case in which the defendants promised returns as high as 40% and misrepresented their backgrounds in order to convince baby boomers and senior citizens to invest.  The company involved is Mid-Western Natural Gas, Inc.  It convinced more than 1,300 people from U.S., Canada, and Puerto Rico, to invest.  Read more about the case at the SEC’s press release. (more…)

Expect to See More of These

Friday, June 6th, 2008

How many of you have considered buying a few shares of Exxon to cushion the blow of the outrageous price at the pump?  Like the rest of us, scam artists know that oil companies are making money hand over fist.  What better way to take the nest eggs of hard working baby boomers, then, than to tell them that they can be Jed Clampett?  (more…)