Securities Lawyer Blog | Victim of Fraud?

TAG | oil and gas projects fraud

May/13

7

Striker Petroleum Investments Ponzi Scheme on Elderly Investors

Comments off · Posted by Securities Lawyer in FINRA

There were allegations filed with the Financial Industry Regulatory Authority or FINRA Dispute Resolution, which state that a broker-dealer with AXA Advisors in Orange County, California, persuaded a retired couple, and a retired woman, to invest in essentially worthless and inappropriate investments. This alleged Ponzi scheme preyed on retired Filipino-Americans.

The clients allege that the former AXA advisor guided them to invest $50,000 in Striker Petroleum in 2008. In 2009, the Securities & Exchange Commission filed suit against Striker alleging that Striker was essentially a Ponzi scheme. In 2011, the U.S. District Court in Dallas issued an order that investments in Striker were “essentially worthless” and that losses in those investments were “the result of fraud.” Also, the SEC issued a Cease and Desist order against the former AXA broker-dealer for selling other Ponzi-scheme style investments in Striker and other oil and gas properties.

As a result of this misrepresentation of Striker as a “safe investment,” the retired couple lost their entire investment.

Likewise, the former AXA broker-dealer advised the retired woman to invest $36,000 from her 401k into Halek Energy, which she also described as a “very safe investment” with working oil and gas wells in Texas. It further alleges that the former advisor also sold an unsuitable variable annuity that has locked up her assets for 10 years, until she is 80 years old.

Halek Energy, like Striker, was essentially worthless and the retired woman lost her entire investment.

FINRA claims seek damages against both the broker-dealer and AXA for the loss of the client’s investments, as well as compensation for their losses, penalties, fees and costs.

If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations in Striker Petroleum or Halek Energy, call for a free consultation on how to potentially recover your losses. To speak with an attorney call Soreide Law Group at 888-760-6552.

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Dec/12

13

SEC Charges in Oil Drilling Scam by South Floridian Joseph Hilton/Yurkin

Comments off · Posted by Securities Lawyer in FINRA

The Securities and Exchange Commission (SEC) recently announced that it has obtained an emergency court order to freeze the assets of a South Florida man who has been charged with fraudulently offering investments in oil drilling projects in an article posted on the SEC’s website.

The SEC’s complaint, unsealed in federal court in West Palm Beach, Fla., alleges that Joseph Hilton made numerous misrepresentations to investors while selling limited partnership units in two oil drilling projects earlier this year through his firm Pacific Northwestern Energy LLC. Hilton falsely told potential investors that Pacific acquired its wells from Exxon Mobil Corp., and he overstated Pacific’s experience in the oil and gas industry and the historical accomplishments of its drillers. Hilton raised approximately $789,000 from investors. The SEC’s action froze the assets of Hilton, Pacific, and the two limited partnerships — Rock Castle Drilling Fund LP and Rock Castle Drilling Fund II LP. Hilton’s securities offerings were not registered with the SEC as required under the federal securities laws.

In the SEC’s complaint, there were allegations against Hilton, Pacific, and another company that was controlled by Hilton called New Horizon Publishing Inc. Through Pacific and New Horizon, Hilton sold $2.5 million worth of investments in oil drilling projects sponsored by United States Energy Corp. while deceiving investors about his identity, the anticipated returns on the investments, the amount of oil being produced by U.S. Energy’s wells, and the existence of natural gas wells.

The SEC’s complaint adds that Hilton changed his name from Joseph Yurkin late last year following a final judgment for fraud in a previous SEC enforcement action against him for securities offerings he made through another company he worked for — Homeland Communications Corp.

It was reported that the SEC is seeking disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions against Hilton and his entities.

If you or a family member were sold oil and gas offerings by Joseph Hilton (aka Joseph Yurkin) or any of the above companies, and experienced financial losses, contact an attorney at Soreide Law Group for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552, or visit http://www.securitieslawyer.com.

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Nov/12

6

Did You Invest in These Oil and Gas Funds?

Comments off · Posted by Securities Lawyer in FINRA

Did you invest in Mountain V Oil and Gas, or Ridgewood Energy Funds I through Z?

Typically, investing in an oil and gas deals or limited partnerships can be a speculative venture that may have the risks associated with illiquid investments. When making investments in oil and gas deals or energy limited partnerships, we highly recommend caution.

Mountain V Oil & Gas, Inc., with it’s headquarters in Bridgeport, West Virginia, was founded in 1994 by Steve and Mike Shaver to obtain oil and gas reserves in the Appalachian Basin.

Ridgewood Energy Funds, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y and Z, were limited partnership deals that may not have produced returns in excess of the client’s original investment. Now, the investors in Ridgewood Energy Funds, have illiquid limited partnership interests that may not be producing the income they were promised by their broker/financial advisor.

Investors in these oil and gas funds who have suffered financial losses may potentially be able to recover their losses through a FINRA arbitration.

Oil and gas funds typically are sold through private placement securities offerings. These investments can be risky and not suitable for the portfolios of the conservative investor.

If you or a family member have sustained losses in any of these oil and gas investments due to your stock broker or financial advisor’s recommendation, call 888-760-6552, or visit http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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May/12

7

Blimline sentenced in Oil and Gas Ponzi Scheme

Comments off · Posted by Securities Lawyer in FINRA

It was announced today that a federal judge sentenced a 36-year-old Dallas man, Joseph Blimline, in connection with his role in a pair of complex, lucrative oil and gas Ponzi schemes that operated in Michigan and Texas, U.S. Attorney for the Eastern District of Texas John M. Bales announced.

Joseph Blimline was sentenced to 240 months in federal prison on each of the charges related to the Ponzi schemes on May 3, 2012, before U.S. District Judge Marcia A. Crone,who ordered the sentences to run concurrently and that restitution be made to the victims of the schemes.

At the sentencing hearing, the government presented testimony and evidence which established that Blimline and others began operating a Ponzi scheme in Michigan between November 2003 and December 2005. Blimline ordered that later investor payments be used to pay previous investors and diverted investor payments for his own personal benefit–thus creating a ‘Ponzi Scheme.’ The Michigan scheme netted over $28 million before its collapse.

According to the FBI website article, Blimline exported the Michigan Ponzi scheme to Texas, in 2006, where he and his new co-conspirators began the operation of Provident Royalties in Dallas. Blimline made  false representations and failed to disclose material facts to their investors in order to persuade the investors into providing payments to Provident. Blimline received millions of dollars in unsecured loans from investor funds and also directed the purchase by Provident of worthless assets from his Michigan enterprise. In the Provident scheme, funds from later investors were also consistently used to make payments to early investors, resulting in the collapse of the scheme in 2009. The Provident scheme netted over $400 million from approximately 7,700 investor victims.

“The Michigan agents worked hand in hand with the agents in Texas and with federal and state securities regulators to untangle both of these complicated Ponzi schemes and bring the perpetrators to justice for their abuse of the trust of others to obtain criminal profits,” said U.S. Attorney Bales. “To all potential investors, I urge you to be wary of investment vehicles that promise exorbitant rates of return. Remember: If the opportunity appears too good to be true, then it probably is.”

U.S. Attorney for the Western District of Michigan Donald A. Davis praised the diligent work and cooperation of all involved and said, “Stealing money through fraud and deceit will not be tolerated.”

FBI Detroit Division Special Agent in Charge Andrew G. Arena said, “This sentencing comes as a result of the hard work performed by agents committed to stopping this type of fraud. Those who choose to steal money through the operation of these schemes will be arrested and brought to justice.”

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Jan/12

17

Did You Invest in These Oil and Gas Offerings?

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group, PLLC, is currently investigating the following oil and gas deals:

KBS REIT, DBSI, BDA Bradford Drilling, United Development Fund, Leaf Equipment Leasing Fund, Cypress Equipment Fund, Net REIT, REEF Income and Development Fund, and Waveland Drilling Partners.

Investors can file arbitration claims, as an option if they have been victimized by these products, if the investments were recommended by a financial advisor at a brokerage firm.

There were massive commissions involved in oil and gas deals, and the commissions often provided an incentive for the broker to recommend these products. In many cases, these were not appropriate or suitable investment recommendations for their clients. Often, an unsuitable and inappropriate amount of the client’s portfolio was placed into these investments. Brokers and financial advisors have a duty to only recommend investments that are appropriate for their client.
 
If you or a family member have sustained losses in any of these oil and gas investments due to your stock broker or financial advisor’s recommendation, call 888-760-6552, or visit www.securitieslawyer.com.
 
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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