Two California Oil & Gas Companies Charged with Securities Fraud in Texas District Court

Two California-based oil and gas companies — Team Resources, Inc. and Fossil Energy Corp. — are the target of a securities fraud suit filed by the Securities and Exchange Commission (“SEC”) in the U. S. District Court for the Northern District of Texas.

Team Resources and Fossil Energy founder Kevin Albert Boyles and four members of his sales team — Philip Adam Dressner, Michael James Eppy, John M. Olivia and Andrew Stitt — were also charged with various violations of the Securities Act of 1933 and the Exchange Act of 1934.

According to the complaint, the SEC alleges that over a five-year period from 2007 to 2012, Team Resources and Fossil Energy made eight unregistered offerings of oil and gas partnership interests, raising more than $33 million from approximately 475 investors. Team Resources and Fossil Energy contracted with third parties to drill the wells. None of the wells drilled produced oil or gas in the amounts promised to investors.

The SEC alleges that the four salesmen used deceptive practices to attract investors, including misleading investors about potential returns, misrepresenting the success of prior offerings and how the investment funds would be used. Boyles is accused of paying large commissions (25% to 35%) to the salesmen, even though none of them were registered brokers or associated with a registered broker-dealer.

The specific charges against Team Resources, Fossil Energy, Boyles, Dressner, Eppy and Stitt include violations of Sections 5(a), 5(c), and 17(a) of the Securities Act as well as Sections 10(b) and 15(a) and Rule 10b-5 of the Exchange Act. Olivia is charged with violating Sections 5(a) and 5(c) of the Securities Act and Section 15(a) of the Exchange Act.

All the parties charged have consented to judgments permanently enjoining them from violating the various sections and rules of the Securities Act and the Exchange Act that they were charged under the suit. In addition, Team Resources, Fossil Energy, Boyles and Olivia have agreed to pay civil penalties in an amount to be determined by the court and to disgorge their ill-gotten gains.

The Cogdell Law Firm is a full service criminal litigation and appellate law firm. We provide client-focused representation at all stages of the process, whether our clients are seeking to avoid charges, have been charged, or are seeking reversal of a conviction on appeal. When results matter most, contact Dan Cogdell at (713) 426-2244 or info@cogdell-law.com

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