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U.S. Securities and Exchange Commission


LITIGATION RELEASE NO. 16830 / December 15, 2000

United States v. David Shane Lewis; 3:00-CR-064-M and 1:00-CR-016-C (USDC/NDTX)

On, December 8, 2000, David Shane Lewis, also known as David Kevin Lewis, was sentenced by U.S. District Judge Barbara M.G. Lynn in Dallas, Texas, to concurrent terms of 46 months imprisonment, ordered to make restitution of $2,228,171, placed on supervised release for three years to be served at the end of his term of imprisonment, and ordered to pay a $200 special assessment. (Case Nos. 3:00-CR-064-M and 1:00-CR-016-C). Lewis earlier had pleaded guilty to one count of securities fraud in connection with several oil and gas offerings by Spartan Oil Corporation (Spartan) and to one count of conspiracy to commit mail fraud in connection with an oil and gas offering by Centurion Group, Inc.

In a related action, the Securities and Exchange Commission filed a civil action against Lewis and Spartan on January 30, 2000. In its complaint, the Commission alleged that using a boiler room sales force, Lewis and Spartan made numerous material misrepresentations and omissions in connection with a succession of fraudulent oil and gas offerings, including misleading statements about Lewis' experience and past results, the assets and operations of Spartan, Spartan's ownership of certain leases, the potential production and costs of Spartan's projects, and the use of investor proceeds. The Commission complaint also alleges that Lewis misapplied Spartan investor funds to repay Centurion Oil Production Corporation investors for their failed project and to run the Spartan boiler room. The Commission's case against Lewis and Spartan continues. Information derived from the SEC investigation was used by the FBI and the United States Attorney in its development of its case against Lewis.