On October 13, 2015, the Commission filed a complaint against Ascenergy LLC and Joseph (a/k/a Joey) Gabaldon (collectively, “Defendants”) and named Alanah Energy, LLC and Pyckl LLC as relief defendants (collectively, “Relief Defendants”). The complaint alleged that Defendants raised approximately $5 million from approximately 90 investors using crowdfunding websites in a fraudulent scheme to solicit investors to purchase overriding royalty interests in undeveloped oil and gas wells. See the Commission’s Complaint.

The Court ordered that Defendants were liable for a total of $7,179,690 in disgorgement, prejudgment interest, and civil penalties. Additionally, the Court ordered that the Relief Defendants were liable for a total of $4,200,514 in disgorgement and prejudgment interest. See the Final Judgment.

Ascenergy LLC has paid $22,491.59 and Pyckl LLC has paid $758,209.98 for a total of approximately $780,701. 

On December 27, 2019, the Court entered an order creating a Fair Fund (the “Fair Fund”), for the monies paid, along with any additional funds received pursuant to the outstanding final judgment. The Court further ordered Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund to fulfill the tax obligations of the Fair Fund. See the Court’s Order.

On March 31, 2020, the Court appointed JND Legal Administration as the Distribution Agent to oversee the administration and distribution of the Fair Fund to harmed investors. See Order Appointing Distribution Agent.

For more information, please contact the Commission.

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov