According to the Texas State Securities Board, Insignia Energy Group Inc. and its affiliate IEG Permian Basin LLC have violated state law because they are not registered to sell Texas securities. The Texas Securities Commissioner, which is accusing the Dallas-area emergency company of targeting laid-off teachers in the fraudulent sale of gas and oil interests, has put out an emergency cease and desist order against Insignia. The state is also accusing both companies of issuing misleading statements to potential investors.
Per the order, Insignia and IEG must cease from selling securities until they are registered with the state of Texas. The securities board is also is asking for the cessation of deceptive statements.
The state contends that Insignia is telling Texas school workers, including retired and current teachers, that investing in the oil and gas interests will “replace” income during a period of impending layoffs. Insignia is also allegedly encouraging these potential investors to spend their retirement money on these supposedly “safe” investments that the state’s securities commissioner says are actually very risky.
These prospective clients were offered interests in the Sabine Partnership, which is supposed to develop well prospects in Louisiana. The investors were to receive limited partnership interests that are the equivalent of 10% of the underlying working interest, as well as 7.3% of the underlying net revenue interest in the partnership. The order says that Insignia is claiming that investors who put in $21K will get at least $5K in returns a month, while those who put in $45K will get back a minimum of $15K monthly.
Our Texas securities fraud lawyers are here to help investors recoup their losses.
Related Web Resources:
Energy company targeting teachers in scam, Texas officials say, Yahoo/Reuters, May 16, 2011
Hot air? Oil and gas company allegedly misled teachers, Investment News, May 16, 2011
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“Loser Pays” in Texas: A Very Bad Bill for 99% of Republicans!, Stockbroker Fraud Blog, May 17, 2011
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Whistleblower Lawsuit Claims Taxpayers Were Defrauded When Federal Government Bailed Out Houston-Based American International Group in 2008, Stockbroker Fraud Blog, May 5, 2011
Do not hesitate to contact Shepherd Smith Edwards & Kantas LTD LLP if you believe you were the victim of a Dallas securities fraud scheme.