SEC Charges Recidivist with Stealing $5.2 Million from Investors
Litigation Release No. 25666 / March 15, 2023
Securities and Exchange Commission v. Peter D. Krieger, Civil Action No. 9:23-cv-80398 (S.D. Fla. filed Mar. 13, 2023)
The Securities and Exchange Commission today charged recidivist Peter Krieger, a former manager of Oban Energies, LLC ("Oban"), with misappropriating approximately $5.2 million of investor funds for his personal use including to purchase luxury cars and jewelry. Oban is a Florida-based entity formed to develop an oil refinery and storage facility in the Bahamas.
According to the SEC's complaint, from at least January 2017 through August 2020, Krieger used his exclusive access to Oban's bank account to direct investor funds to two unrelated entities he controlled, either directly or through a third party intermediary. The complaint alleges that Krieger diverted approximately $3.7 million of investor funds to one of his entity's bank accounts through direct deposits and hundreds of electronic fund transfers. As alleged, Krieger concealed his misappropriation and created an air of legitimacy by, among other things, transferring about $1.5 million of investor funds from Oban's bank account to another account he controlled, and then to the trust accounts of a New York-based attorney who, in turn, transferred the money back to a bank account controlled by Krieger. The complaint further alleges that Krieger transferred an additional $1.5 million in investor funds from Oban's bank account to pay credit card charges for another entity he controlled.
The SEC's complaint, filed in U.S. District Court for the Southern District of Florida, charges Krieger with violating the antifraud provisions of Sections 17(a)(1) and (a)(3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder.
To resolve the SEC's charges, Krieger agreed to the entry of a judgment that permanently enjoins him from future violations of these provisions of the federal securities laws and includes a permanent conduct-based injunction, bars Krieger from serving as an officer or director of a public company, and orders him to pay disgorgement, prejudgment interest, and civil penalties in amounts that will be determined by the court upon future motion of the SEC. The partial settlement with Krieger is subject to court approval.
The SEC's investigation was conducted by Steven J. Meiner and Mark Dee of the Miami Regional Office, and was supervised by Jessica M. Weissman and Glenn Gordon. The SEC's litigation will be led by Stephanie N. Moot and supervised by Teresa Verges.