Energytec Operated Ponzi Scheme, Suits Allege

Law360, New York (December 4, 2007, 12:00 AM EST) -- Energytec Inc. and some of its top executives have been hit with litigation accusing them of operating a ponzi scheme to defraud investors.

According to a trio of lawsuits filed Monday with the U.S. District Court for the Northern District of Texas, Energytec used unregistered broker-dealers to sell unregistered securities.

The company also allegedly made false and misleading statements that lulled the plaintiffs into thinking their investments were secure, filed false reports with the U.S. Securities and Exchange Commission and breached their contracts with the plaintiffs....
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