U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23663 / September 30, 2016
Securities and Exchange Commission v. Aegis Oil, LLC and Patrick Reagan Beason, Civil Action No. 0:16-cv-62335-BB (S.D.FL. September 29, 2016)
On September 29, 2016, the Securities and Exchange Commission charged Aegis Oil, LLC and its President and CEO Patrick Reagan Beason with defrauding investors in oil and gas projects managed by Aegis.
According to the SEC's complaint filed in the U.S. District Court for the Southern District of Florida, from at least October 2010 through October 2015, Aegis and Beason raised approximately $35million from approximately 250 investors nationwide through a series of unregistered offerings in 15 oil and gas projects. The SEC alleges that Aegis and Beason made material misrepresentations and omissions orally and in written offering materials concerning the use of investor proceeds, the projected oil production and income from the investment, and Beason's disciplinary history. The SEC also alleges that Aegis used an independent network of sales agents to solicit potential investors, and that Aegis paid commissions as high as 35% of investor funds to these sales agents.
Without admitting or denying the SEC's allegations, Aegis and Beason agreed to settle the cases against them. The settlements are pending final approval by the court. Specifically, Aegis and Beason each consented to the entry of a final judgment permanently enjoining each of them from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and with respect to Beason only, Section 15(a)(1) of the Exchange Act. In addition, Aegis is required to pay disgorgement of $34,725,212 plus prejudgment interest of $5,818,855, and a civil penalty of $775,000; and Beason is required to pay disgorgement of $1,891,129 plus prejudgment interest of $313,840, and a civil penalty of $160,000.
The Commission's investigation was conducted by Raynette R. Nicoleau and Shan Chang in the Miami Regional Office, and supervised by Chedly C. Dumornay. Russell Koonin was the trial attorney on the matter. The SEC appreciates the assistance of the Florida Office of Financial Regulation.