SEC Accuses Texas Broker Of $10M Oil Well Scam

Law360, New York (May 8, 2009, 12:00 AM EDT) -- An unregistered Texas broker and his top salesman have been hit with charges by the U.S. Securities and Exchange Commission over an alleged scheme to raise millions of dollars from investors to fund dry oil and gas wells.

The SEC filed a lawsuit against Geo Securities Inc. principal Hartmut “Hardy” Theodor Rose and salesman James Patrick Reedy in the U.S. District Court for the Northern District of Texas on Thursday, claiming the pair scammed more than 300 investors out of $10 million.

Between August 2003 and...
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