Texas Securities Cases: Two Dallas Men Ordered to Halt $4M Oil and Gas Offering Amidst Fraud Allegations, DavorCoin is Barred from Offering investments, and Austin Cryptocurrency Investment Firm is Told to Stops Securities Sales

State Regulator Orders Cessation of $4M Oil and Gas Offering

In an Emergency Cease and Desist Order, the Texas Securities Commissioner has ordered Parker R. Hallam and Jason A. Gilbert, two Dallas residents, to stop their efforts to raise $4.4M in an oil and gas offering. The two men are accused of fraud allegations.

Hallam and Gilbert have been offering investors interest in a well project that would be based in Kansas. They reportedly intend to take $1M of investor funds as a management fee payment to SourceRock Energy Phoenix Prospect LP, which is the company that they do business as. Meantime, the rest of the funds would go toward leasing and building the well field. The two men have not, however, told investors that drilling costs are estimated to be at just around $750K.

Hallam also is accused of failing to tell investors that in 2016, the US Securities and Exchange Commission sued him and others over their alleged involvement in an $80M oil and gas fraud. Also, according to the Texas securities regulator, Gilbert failed to disclose that the Internal Revenue Service previously filed $548K in tax liens against him. The government agency also filed liens against Hallam, who has yet to pay nearly $143K of what he owes.

Texas Issues Emergency Order to Stop Entity from Selling Investments in Cryptocurrency Lending Platform

DavorCoin has been ordered to stop soliciting investors in the state of Texas for money to invest in its cryptocurrency lending program. According to the emergency order by the Texas State Securities Board, the entity has been claiming that investors can make “lucrative profits.”

Investors that buy davoircoin cryptocurrency are supposed to “lend it to (the company) DavorCoin.” The company purportedly claims that an investor who lends it $30K in davoircoins stands to earn over $15K in the first month alone and more than $107K after four months. The Texas State Securities Board, however, is concerned because DavoirCoin has yet to disclose how such healthy profits would be made. It also has failed to reveal who its principals are or where it is located because of, supposedly, “tax and regulation risks.”

DavorCoin is accused of making statements that are “materially misleading” and likely to deceive, including that the cryptocurrency can be traded on popular exchanges as if they were like other stock. The state regulator’s Enforcement Division noted that DavorCoin is not a registered firm in the state. Selling securities that are unregistered in Texas is a violation of the Texas Securities Act.

Austin Investment Firm Agrees to Stop Selling Securities in Texas

Daniel Neves, the CEO Investors in Crypto LLC, has consented to stop selling any kind of securities in the state of Texas until he and his firm are registered with the Texas Securities Commissioner or qualify for a registration exemption. The crypto-investment firm is located in the Texas suburb of Leander.

The Texas State Securities Board found that Neves was using social media and an online financial services forum, directed at Austin residents, to offer the securities. According to the state, Neves and his firm were offering investments in cryptocurrency investment programs to investors that are unaccredited. Among the investments touted:

· CryptoCurrency Investment Pool/Digital Asset Arrays

· Portfolio Management 101

· Cryptocurrency Corporate Investment Portfolio

· Crypto Retirement Portfolio

· A day trading program

These investments have yet to be registered in the state.

Texas Securities Fraud

Throughout the state, our Texas securities fraud lawyers work with investors in helping them to recoup their investment losses. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

The Civil Enforcement Action in the Alleged Oil and Gas Fraud (PDF)

The Civil Enforcement Action in the Texas Securities Case Against Neves and Crypto LLC (PDF)

The Emergency Cease and Desist Order in the DavorCoin Case (PDF)

More Blog Posts from SSEK Law Firm:

Texas Securities Cases: Ex-LPL Financial Adviser is Suspended for Charging Unreasonable Fees and Commissions, State Regulator Enters Cease and Desist Order Against R2B Coin, and Former Pharr Bank Worker Pleads Guilty to $1M Theft Involving Elderly Customers, January 30, 2018

Texas REIT UDF Files Lawsuit Accusing Hedge Fund Manager of Damaging False Statements, November 30, 2017

Credit Suisse Resolves NY Regulator’s Forex Rigging Probe for $135M, Institutional Investor Securities Blog, November 15, 2017