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Articles Tagged with Oil and Gas fraud

Owners Accused of Misappropriating Nearly $2.7M from Investors

The US Securities and Exchange Commission (SEC) has filed a civil fraud lawsuit accusing APEG Energy, GP, LLC (APEG) and its owners Paul W. Haarman and Patrick E. Duke of fraudulently raising over $17.4M from 115 investors of an oil and gas investment fund. 

These investors purchased limited partnership securities in APEG Energy, LP, a fund concentrated in the oil and gas industry. Now, the SEC is alleging misrepresentations and omissions, breach of fiduciary duty, and a deceptive scam that allowed the Fund and its owners to take almost $2.7M from investors.

Investors May Have Been Subject to Unsuitable Recommendations & Misrepresentations

If you are a UBS customer whose broker persuaded you to invest in Noble Corporation, you likely have lost money. The offshore drilling company filed for Chapter 11 bankruptcy protection on July 31 in Houston, Texas. 

Noble Corp. took a huge financial hit this year as COVID-19 caused oil and gas prices to plunge in value, making oil wells below the sea too costly. However, the company’s financial woes did not stop UBS Financial Group from recommending Noble stock shares to investors all the way leading up to its bankruptcy filing.

The Drop In Oil Prices Could Lead To Losses For Midstream MLP Investors 

With oil and energy stocks continuing to fall – Saudi Arabia’s threat to globally distribute millions of barrels of crude oil in order to win the oil price war over the United States and Russia has only exacerbated these declines. Investors may be wondering – what does this mean for Midstream Master Limited Partnerships (MLPs)? 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our MLP investment fraud lawyers work with investors that have sustained significant losses caused by fraud or negligence. 

The U.S. Securities and Exchange Commission is charging Breitling Energy Corp. (BECC), Breitling Oil & Gas Corporation, Patriot Energy Inc., Crude Energy, LLC, and eight people over an $80M Texas oil and Gas scam run by a Dallas man. Chris Faulkner, who is Breitling Energy Corp.’s CEO, is accused of starting the scam as far back 2011 through Breitling Oil and Gas Corporation (BOG), which sold “turnkey” oil and gas working interests.

Faulkner is charged with issuing misleading and false offering documents, trying to manipulate BECC’s stock, and misappropriating clients’ funds, including at least $30M for his own expenses, such costly meals, international travel, personal escorts, and jewelry. The SEC said that the false offering documents included fake statements and omissions regarding Faulkner’s experience, the ways in which investor money would be used, and drilling cost estimates. The documents also included reports by Joseph Simo, a licensed geologist. Simo’s production projections purportedly had no basis and the reports did not mention that he had ties to BOG.

The SEC said that BECC, Patriot Energy, and Crude Energy also were involved in the scam. Faulkner is accused of setting up the latter two companies so he could scam investors through additional offerings that resembled those offered by BOG. BOG, Patriot, and Crude would go on to raise over $80M from investors.

Also facing SEC charges are ex-Crude and Patriot employee Beth Hadkins, ex-BECC CFO Rick Hoover, BECC COO Jeremy Wagers, BOG co-owners Dustin Michael Miller Rodriguez, and Parker Hallam, Simo, and ex-BECC employee Gilbert Steedley. Wagers and Hoover,

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