SEC freezes assets of Dallas company accused of oil and gas-themed Ponzi scheme
By APTuesday, July 7, 2009
SEC freezes assets of Dallas company
DALLAS — Federal regulators have frozen the assets of a company accused of running a $485 million Ponzi scheme centered on the oil and gas industry.
In a statement issued Tuesday, the Securities and Exchange Commission says the scheme was orchestrated by three Dallas businessmen through a company called Provident Royalties LLC.
The Delaware company, which had its primary office in Dallas, didn’t immediately respond to a phone message Tuesday.
The SEC alleges that from at least June 2006 through January 2009, Provident made fraudulent securities offerings involving oil and gas assets to more than 7,700 investors. According to the SEC’s complaint filed in a federal district court in Texas, Provident falsely promised yearly returns of up to 18 percent.
(This version CORRECTS in lede and graf 3 that company based in Delaware but has main office in Dallas)
