SEC sues investment firm, alleging fraud

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, Sept. 24 -- The US Securities and Exchange Commission sued Texas Securities Partners LLC of Plano, Tex., and its president, Tony E. Morrison, on Sept. 15 for alleged oil and gas stock fraud.

TSP, at Morrison’s direction, fraudulently sold fractional interests in oil and gas offerings from January 2005 through June 2008 to more than 500 investors nationwide, the SEC said in a civil complaint filed in US District Court for Northern Texas in Dallas.

It alleged that the firm raised $12.7 million from investors by making material misrepresentations regarding past performance, expected returns, and risk.

SEC alleged TSP representatives said that a previous offering provided a $30 million return to investors, that the investor would pay out 80-120% cash-on-cash return in the first year, that no project had resulted in a dry hole, and that the investment was a “sure thing.”

The complaint said that none of TSP’s offerings returned investor principal or profits and that three of the wells were dry holes. It also alleged that TSP’s offerings were not registered with the commission and were not otherwise exempt from registration.

Morrison and TSP settled the allegations without admitting or denying them by consenting to a final judgment barring it from future violations of certain federal securities laws and holding it liable for a $1.2 million disgorgement payment plus $52,802.44 of prejudgment interest, the SEC said.

It added that the judgment does not order Morrison and TSP to pay civil penalties and waives the disgorgement and prepayment interest payments based on the defendants’ sworn financial statements and supporting documents.

In a follow-on administrative proceeding, Morrison also accepted an order barring him from associating with any securities broker or dealer.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Full set of tools needed for US Arctic spill response, NRC finds

04/23/2014 A full slate of response tools will be needed to address crude oil spills in the US Arctic, but not all of those tools are readily available, the N...

Turkey, Gazprom mull Blue Stream capacity increase

04/22/2014 Turkey and OAO Gazprom have discussed a possible increase in natural gas capacity of the Blue Stream gas pipeline to 19 billion cu m/year from 16 b...

Latest Keystone delay isn’t political, White House spokesman says

04/22/2014 The decision to give eight federal agencies more time to prepare comments about the proposed Keystone XL crude oil pipeline project’s cross-border ...

GAO: Scant data exists about NEPA analyses' costs, benefits

04/21/2014 Little information exists about the costs and benefits of analyses required under the National Environmental Policy Act, the Government Accountabil...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected