SEC Settles Charges Against Jeffery A. McCollum and JNL Oilfield Instruments, LLC in Oilfield Services Equipment Ponzi Scheme
July 28, 2016
The Securities and Exchange Commission charged Odessa, Texas-based JNL Oilfield Instruments, LLC and its founder Jeffery A. McCollum with operating a multi-year Ponzi scheme.
The SEC’s complaint alleged that the defendants raised more than $12 million from approximately 30 investors by offering investment contracts for the purchase and resale of oilfield services equipment. However, funds raised from investors were used to pay off earlier investors and to pay McCollum’s personal expenses.
Without admitting or denying the SEC’s allegations, McCollum and JNL agreed to a settlement that permanently enjoins both McCollum and JNL from future violations of securities laws, requires them to pay a $160,000 penalty, and requires them to pay disgorgement and prejudgment interest. The settlement is subject to court approval.
The SEC’s investigation was conducted by Keefe Bernstein and Ty Martinez in the Fort Worth Regional Office, and supervised by David Peavler and Barbara Gunn. The SEC’s litigation will be led by Mr. Bernstein. The SEC appreciates the assistance of the Federal Bureau of Investigation. See here for more information.