U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23856 / June 12, 2017

Securities and Exchange Commission v. Ascenergy LLC et al., No. 2:15-cv-01974 (D. Nev. filed Oct. 13, 2015)

SEC Obtains Final Judgment against Ascenergy LLC, Joseph Gabaldon, and Alanah Energy, LLC

The Securities and Exchange Commission announced today that it has obtained a final judgment against Ascenergy LLC, Joseph Gabaldon, and Alanah Energy, LLC.

The SEC's complaint alleges that, since at least 2014, Ascenergy and Gabaldon engaged in a deceptive scheme on crowdfunding websites and the company's website to solicit investors to purchase overriding royalty interests in five initial, undeveloped oil and gas wells. According to the complaint, Ascenergy raised approximately $5 million from approximately 90 investors worldwide. The complaint alleges that Ascenergy and Gabaldon made multiple, material misrepresentations about the company, the nature of the offering, and the use of investor funds. The SEC also alleges that Alanah and Pyckl LLC - both of whom have been charged as relief defendants - have received, possessed, or benefited from investor funds.

The complaint charges Ascenergy and Gabaldon with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the SEC's complaint, Ascenergy and Gabaldon consented to the entry of a final judgment imposing permanent injunctions and ordering Ascenergy and Gabaldon, jointly and severally, to pay disgorgement of $5,112,473, prejudgment interest of $197,217, and civil penalties of $1.55 million and $320,000 each, respectively. The final judgment also orders Alanah to pay disgorgement of $103,890 with prejudgment interest of $4,670. On May 23, 2017, the Honorable Chief Judge Gloria M. Navarro of the United States District Court for the District of Nevada entered the final judgment against Ascenergy, Gabaldon and Alanah.

The SEC's continuing litigation is being conducted by David Reece and Keefe Bernstein of the Fort Worth Regional Office.

Final Judgment - Ascenergy LLC, Joseph Gabaldon, and Alanah Energy, LLC