SEC Charges President of Oil and Gas Company for Misusing Retail Investor Funds
Litigation Release No. 24514 / June 26, 2019
Securities and Exchange Commission v. Mark Allen Plummer, No. 3:19-cv-01538-G (N.D. Tex., filed June 26, 2019)
On June 26, 2019, the Securities and Exchange Commission filed charges against Mark A. Plummer for misappropriating investor funds raised through Texas E&P Partners, Inc., his oil and gas operating company. Plummer has agreed to pay over $500,000 to settle these charges.
According to the SEC's complaint, filed in the United States District Court for the Northern District of Texas, Plummer, a Texas resident, founded and controlled Texas E&P and its affiliated entities. From February 2015 to April 2017, Texas E&P raised $6.1 million from retail investors by offering and selling interests in joint ventures formed to drill and operate two separate oil well projects. Contrary to representations made to investors, Plummer allegedly spent nearly $400,000 of these investor funds improperly for personal or improper business expenses, including entertainment, travel, retail expenses, and income taxes.
Plummer has agreed to settle the SEC's charges by consenting to the entry of a final judgment that permanently enjoins him from violating the antifraud provisions of 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, and orders him to pay $399,011 in disgorgement, $33,008 in prejudgment interest, and a $75,000 civil penalty. The settlement is subject to court approval.
The SEC's investigation was conducted by Rebecca Fike and supervised by Jim Etri of the Fort Worth Regional Office. The SEC's litigation is being handled by Chris Davis and B. David Fraser.