SEC Accuses Texas Co. Of $485M Ponzi Scheme

Law360, New York (July 7, 2009, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission announced Tuesday that it had won an emergency asset freeze in a lawsuit it filed against a Texas energy investment firm and its managers for allegedly running a $485 million Ponzi scheme.

In a complaint filed July 1 in the U.S. District Court for the Northern District of Texas and unsealed Tuesday, the SEC accused Provident Royalties LLC and its three managing partners — Paul R. Melbye, Brendan Coughlin and Henry Harrison — of fraudulently selling securities backed by oil...
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