SEC Halts $3.9 Million Oil & Gas Scam; "Real-Time" Enforcement Initiative Cited
FOR IMMEDIATE RELEASE
Washington, D.C., December 3, 2001 The Securities and Exchange Commission announced today that it has obtained emergency ex parte orders from the U.S. District Court for the Northern District of Texas to shut down an oil and gas investment scam in which more than 100 people invested approximately $3.9 million.
Specifically, the Court entered orders freezing the assets of C-Tech, L.L.P., of Comanche, Texas, and its managing partner, Robert W. Schlotterbeck. The Court also named a receiver for C-Tech. The Court issued the orders based on evidence presented by the Commission showing that C-Tech and Schlotterbeck had misappropriated more than $1 million of offering proceeds for, among other things, a luxury golf course lot, commodities trading, and a money market account believed to be controlled by Schlotterbeck.
The Commission filed the lawsuit and obtained the emergency orders within four business days of initially learning of the scheme. Upon discovering that investor funds had been misappropriated and that assets purchased with such funds were still under the control of the alleged wrongdoer, the Commission moved swiftly to halt the scheme and preserve assets for the benefit of the victims of the scheme. As a result of the Commission's prompt action, it appears that cash and assets purchased with investor funds totaling at least $800,000 already have been frozen.
Harold F. Degenhardt, District Administrator for the Commission's Fort Worth, Texas, office said: "The C-Tech case is just one more example of the Commission's resolve to bring enforcement actions on a 'real-time' basis. This is especially true in ongoing schemes where investor funds remain at risk." Degenhardt added that, "not only will we move quickly, but we will also utilize all available remedies to bring the full force of the Commission to bear to protect investors."
For further information, contact Harold F. Degenhardt (817-978-6469) or Associate Administrator Spencer C. Barasch (817-978-6425) in the Commission's Fort Worth District Office.