U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22737 / July 1, 2013
Securities and Exchange Commission v. Bret Boteler, Civil Action No. 4:13-cv-00527-Y (N.D.TX., filed June 28, 2013)
SEC Charges Oil and Gas Promoter with Securities Fraud
The Securities and Exchange Commission filed a civil injunctive action June 28, 2013, charging Bret L. Boteler of Bedford, Texas with conducting a fraudulent oil and gas-related securities offering that raised more than $17 million from 260 investors across the country.
The Commission’s complaint, filed in the United States District Court for the Northern District of Texas, alleges that, between October 2007 and December 2011, Boteler offered and sold the securities through his now-defunct company, EnerMax, Inc., and that he never registered the offering with the Commission. The complaint further alleges that Boteler falsely portrayed EnerMax to investors as an innovative, technologically sophisticated company offering high quality oil and gas prospects. The complaint also alleges that Boteler misrepresented and omitted material information about the speculative and unproven nature of the prospects in which EnerMax was involved, and that Boteler misused and misappropriated investor funds.
The complaint charges Boteler with violating Sections 5(a) and (c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks civil penalties, disgorgement of ill-gotten gains (with prejudgment interest) and a permanent injunction against Boteler, including an injunction prohibiting him from offering or selling oil and gas-related securities.