SEC charges Giant Operating, president with stock fraud

Giant Operating LLC and its president, George Wesley Harris, operated an oil and gas securities boiler room in Irving, Tex., which fraudulently raised $13 million, the US Securities and Exchange Commission charged on Sept. 28.

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, Sept. 30 -- Giant Operating LLC and its president, George Wesley Harris, operated an oil and gas securities boiler room in Irving, Tex., which fraudulently raised $13 million, the US Securities and Exchange Commission charged on Sept. 28.

Giant and Harris raised the money from investors across the US from December 2007 to the present with at least five unregistered public oil and gas stock offerings, which it sold through the boiler room, the SEC said in a civil complaint it filed in US District Court for northern Texas.

It also alleged that the company and Harris made material representations as they offered and sold the stock regarding the use of offering proceeds, investment returns, and purportedly lucrative contracts with third parties.

The complaint said that Harris also misappropriated at least $2 million of the offering proceeds by, among other things, transferring funds to Giant Petroleum Inc. and DSSC Operating LLC, two companies which he owns and controls, and to Stephen Christopher Plunkett, who was named as a relief defendant along with Giant Petroleum and DSSC.

Without admitting or denying the allegations that they violated federal securities laws, Giant and Harris accepted a preliminary injunction, asset freeze, an order preserving documents, expedited discovery, and appointment of a receiver, SEC said.

It said it also would seek permanent injunctions against further violations of securities laws, disgorgement plus prejudgment interest, and fines from Harris and Giant.

Contact Nick Snow at nicks@pennwell.com.

More in Companies