The Securities and Exchange Commission has sued two Lewisville-based oil and gas companies, alleging that they improperly raised $11 million for projects.
The SEC says that Overland Energy Inc. and Acorn Energy Inc. used unregistered sales representatives to market investments in the companies and that the investments contained misleading information for potential buyers.
The suit filed Wednesday in federal court in Dallas also names Gary B. Smith, Robert J. Nelson and Steven M. Ray. According to the suit, Smith ran both Overland and Acorn, Nelson supervised the sales process at Overland and Ray was a salesman for Overland.
The investing documents said 82 percent of the proceeds would go toward developing oil and gas assets while only half did, the suit said.
Investor money was used for international travel and other undisclosed purposes, and the companies promised returns that were unachievable, the SEC contends.
Attempts to reach the companies and the named individuals weren't successful Thursday; calls and messages left for the men and the companies weren't returned.
The SEC has won a restraining order that freezes assets of the companies, and seeks civil penalties and payback of investor funds.
http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-secsuit_12bus.ART.State.Edition1.3caa909.html
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