U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21436 / March 4, 2010
Securities and Exchange Commission v. Alan Todd May and Prosper Oil and Gas, Inc. a/k/a Prosper Energy, Inc., Civil Action No. 3:10-cv-425-L U.S.D.C./Northern District of Texas (Dallas Division)
SEC OBTAINS ASSET FREEZE AND TEMPORARY RESTRAINING ORDER AGAINST ALAN TODD MAY AND PROSPER OIL AND GAS, INC.
On March 2, 2010, the Commission filed a civil action against Alan Todd May and Prosper Oil and Gas, Inc. a/k/a Prosper Energy, Inc., alleging their involvement in a multi-million dollar oil and gas offering fraud targeting U.S. investors. Pursuant to the Commission's motions for emergency relief, the court entered a temporary restraining order against the defendants, froze their assets, and appointed Kelly Crawford of Dallas as a receiver over both of them.
The SEC's complaint alleges that Prosper and May, a felon with a long criminal history of theft and fraud, raised at least $6 million from investors through the unregistered and fraudulent offer and sale of fractional, undivided royalty interests in oil-and-gas properties. The SEC alleges that the Defendants attracted investors through classified advertisements in various well-known business publications and postings on at least one auction website. In those advertisements and in correspondence with investors, the SEC alleges, the Defendants claimed that investors would earn between 25 and 38 percent annually from revenues based on oil and gas production. In reality, the SEC alleges, nearly all of the distributions made to investors were Ponzi payments from new investor funds.
The SEC's complaint, which was filed in the United States District Court for the Northern District of Texas, alleges that May and Prosper violated Sections 5(a), 5(c), and 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 Commission acknowledges the assistance of the Texas State Securities Board in this matter.
See Also: SEC Complaint