UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21637 / September 1, 2010
Securities and Exchange Commission v. Halek Energy, LLC, CBO Energy, Inc., Jason A. Halek and Christopher Chad Wilbourn, Civil Action No. 3:10-cv-01719-K (NDTX) (August 31, 2010)
SEC CHARGES TWO COMPANIES AND TWO INDIVIDUALS FOR SELLING FRAUDULENT OIL AND GAS INVESTMENTS
On August 31, 2010, the Securities and Exchange Commission filed suit in United States District Court in Dallas, Texas, alleging that Jason A. Halek of Southlake, Texas and two companies he owns and controls - Halek Energy, LLC and CBO Energy, Inc. - fraudulently sold investments in Texas oil and gas projects. The Commission also charged that one of Halek's salesmen, Christopher Chad Wilbourn, illegally acted as an unregistered broker-dealer and unlawfully offered and sold unregistered securities.
The Commission's complaint alleges that, between June 2007 and September 2009, Jason Halek, Halek Energy and CBO Energy raised approximately $22 million from at least 300 investors nationwide by making materially false and misleading statements about the risks of the oil and gas projects, the use of investor funds, and potential returns from the investments. The complaint further alleges that Jason Halek knew these representations were false and that the vast majority of the oil or gas projects never provided the promised returns to investors. Finally, the complaint alleges that Wilbourn earned large commissions from promoting and selling unregistered oil and gas working interests and pre-IPO shares.
The Commission charges Jason Halek, Halek Energy and CBO Energy with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. In addition, the Commission charges Wilbourn with violating Sections 5(a) and 5(c) of the Securities Act and Section 15(a) of the Exchange Act. The defendants have agreed to injunctions against future violations of these provisions. Halek has agreed to pay a $50,000 civil penalty. The Commission is also seeking disgorgement plus prejudgment interest against each defendant and a civil penalty against Wilbourn.
See Also: SEC Complaint