Alanah, Ascenergy and Gabaldon Final Judgement
On June 12, 2017, the Securities and Exchange Commission (“SEC”) announced that it has obtained a final judgment against Ascenergy LLC, Joseph Gabaldon, and Alanah Energy, LLC.
The SEC’s complaint alleges that, since at least 2014, Ascenergy and Gabaldon engaged in a deceptive scheme on crowdfunding websites and the company’s website to solicit investors to purchase overriding royalty interests in five initial, undeveloped oil and gas wells. According to the complaint, Ascenergy raised approximately $5 million from approximately 90 investors worldwide. The complaint alleges that Ascenergy and Gabaldon made multiple, material misrepresentations about the company, the nature of the offering, and the use of investor funds. The SEC also alleges that Alanah and Pyckl LLC – both of whom have been charged as relief defendants – have received, possessed, or benefited from investor funds.The complaint charges Ascenergy and Gabaldon with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the SEC’s complaint, Ascenergy and Gabaldon consented to the entry of a final judgment imposing permanent injunctions and ordering Ascenergy and Gabaldon, jointly and severally, to pay disgorgement of $5,112,473, prejudgment interest of $197,217, and civil penalties of $1.55 million and $320,000 each, respectively. The final judgment also orders Alanah to pay disgorgement of $103,890 with prejudgment interest of $4,670. On May 23, 2017, the Honorable Chief Judge Gloria M. Navarro of the United States District Court for the District of Nevada entered the final judgment against Ascenergy, Gabaldon and Alanah.
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, or [email protected]. 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 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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