SEC Reaches Settlement Including Permanent Injunctions in Promissory Note Fraud Case

Defendants were an oil and gas exploration, drilling, and leasing company (through subsidiaries) and a founding member thereof. They raised $6,769,635 from at least 61 investors through the unregistered sale of promissory notes, while allegedly failing to disclose a number of critical facts. Foremost among them, the fact that the company was in dire financial straits. Also, that it was in litigation on multiple fronts, and had suffered a key equipment failure, cost overruns and a miss on acquiring a key targeted property. Most of the notes allegedly defaulted/went unpaid.