U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20538 / April 24, 2008
Securities and Exchange Commission v. Don L. Lambert, Defendant, Case No. CIV-308 CV 683-B (N.D. Tex., Dallas Division)
SEC Settles Fraud Charges With Former CEO of Energytec, Inc.
On April 18, 2008, the Securities and Exchange Commission filed a settled civil action in Dallas federal court against Don L. Lambert, the former CEO of Energytec, Inc., charging that in various filings with the SEC, Lambert made materially false and misleading statements, and omitted material information, concerning his biography and background.
Energytec is a Plano, Texas-based oil and gas company, with shares quoted on the Pink Sheets and the OTC Bulletin Board under the symbol EYTC. In its complaint, the Commission charges that Lambert, when he was hired by Energytec, failed to disclose his prior federal securities fraud conviction, his multiple bankruptcies, and that he had forfeited his Texas law license to avoid being disbarred. The complaint further alleges that Lambert provided false information about his employment history. As a result, the Commission charges that the biographical summaries in Energytec's Commission filings omitted this material information, and included false information. The complaint also charges that, after he became CEO, Lambert certified Commission filings by Energytec that continued to omit material information and contained false information about his background.
The SEC's complaint alleges that Lambert violated Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5 and 13a-14 thereunder. The complaint also alleges that Lambert aided and abetted Energytec's violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-11 thereunder. Without admitting or denying the allegations in the Commission's complaint, Lambert consented to the entry of a final judgment permanently enjoining him from violating these provisions, imposing an officer and director bar, and ordering him to pay a civil penalty of $50,000.