Giant Operating, LLC and George Wesley Harris et al.

On September 28, 2009, the SEC filed a settled enforcement action against Giant Operating, LLC and George Wesley Harris in which they consented to a preliminary injunction and an asset freeze.  According to the complaint, from at least December 2007, the defendants fraudulently raised more than $13 million from 150 investors nationwide in at least five oil and gas securities offerings, including the “Giant New Mexico 4.”  In offering and selling these drilling programs, the SEC alleged that Giant Operating ran an unregistered boiler-room, where approximately 20 sales agents were actively engaged in cold-calling prospective investors.  In connection with the Giant New Mexico 4 venture, the SEC alleged that the offering documents contained several materially false and misleading statements concerning the assets and potential returns involved in the offering.  

The SEC also alleged that Harris misappropriated and misapplied at least $2 million of the offering proceeds by transferring funds to Giant Petroleum, Inc. and DSSC Operating LLC, companies controlled by Harris, and to Stephen Plunkett.  The SEC’s complaint names Plunkett, Giant Petroleum and DSSC as relief defendants.  For more information about the SEC’s action, you can read Litigation Release No. 21226 (Sept. 28, 2009).

If you have questions about the Receivership, you can contact Ms. Cook at (214) 593-6429 or by email at karen@karencooklaw.com.