UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21325 / December 4, 2009
Securities and Exchange Commission v. Striker Petroleum, LLC, et al., Civ. Action No. 3:09-CV-2304-D (United States District Court for the Northern District of Texas, Dallas Division).
Court Appoints Receiver for Dallas Oil and Gas Company and Enters Injunctions Against the Company and its Principals for Conducting Fraudulent $57 Million Debenture Offering
On December 3, 2009, the Honorable Sidney A. Fitzwater, Chief United States District Judge for the Northern District of Texas, entered agreed permanent injunctions against Striker Petroleum, LLC ("Striker"), a Dallas area oil and gas company, and its principals, Mark S. Roberts, 58, and Christopher E. Pippin, 35, in an action filed by the Commission on the same date. The Court also entered agreed orders (1) appointing a receiver to collect, marshal, manage and distribute Striker's assets for the benefit of investors and an order to freeze Striker's assets; and (2) prohibiting document alteration or destruction by Striker.
The Commission's complaint alleges that from September 2006 through September 2008, Striker raised approximately $57 million from the sale of debentures collateralized through oil and gas properties to approximately 540 investors nationwide. The Commission further alleges that the debenture offering materials included material misrepresentations and omissions concerning Striker's earnings and asset valuations, use of investor proceeds, and the existence of a third party independent trustee for the debenture collateral.
The complaint alleges that the Defendants violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint requests permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against the Defendants. Without admitting or denying the Commission's allegations, Striker, Roberts and Pippen have consented to permanent injunctions against future violations of the anti-fraud provisions.
In addition, Striker consented to the entry of agreed orders appointing a receiver, freezing its assets, and prohibiting it from destroying or altering documents. The Court will determine the amount of disgorgement and civil penalty that will be assessed against Striker, Roberts and Pippen.