The SEC announced charges against a purported oil well company, its founders, and three salespeople in connection with a $2.4 million offering fraud.
We should learn from it, since it can happen to everyone.
According to the press release, the defendants offered and sold unregistered securities to investors using a boiler room operation. Moreover, the unregistered securities offered had no legitimate business activity, the defendants misappropriated investor money, and investor money were used to make Ponzi payments to certain other investors. The complaint also alleges that the defendants made misrepresentations regarding their oil and gas investment projects managing experience, as well as the amount of returns that investors would receive.