Aegis Oil and President Patrick Beason Charged with Oil and Gas Fraud
On September 29, 2016, the Securities and Exchange Commission (“SEC”) 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.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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