Unlawful Sale of Unregistered Interest in Oil and Gas Investments - South Florida Federal and State Court Litigation Attorney
Securities and Exchange Commission v. Chad Anthony Lewis, No. 18-cv-61869 (S.D. Fla. filed August 13, 2018)
Recently, the Securities and Exchange Commission filed a civil injunctive action against Chad Anthony Lewis, a Kentucky resident for unlawfully acting as an unregistered broker and selling unregistered investments in two oil and gas companies based in Texas.
The SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that Lewis illegally solicited and raised money from investors for Aegis Oil, LLC and 7S Oil & Gas, LLC. Both of these companies offered and sold unregistered securities in the form of "joint venture units" in oil and gas development projects located in Texas.
According to the SEC's complaint, Lewis, who worked at different times both for Aegis and 7S, helped train a network of sales agents that unlawfully solicited investments for Aegis and 7S and assisted agents in closing sales calls with investors. The SEC alleges that Lewis directly solicited at least one investor, who purchased investments in both Aegis and 7S. Lewis was paid transaction-based compensation in the form of a sales commission of 2% on all investor proceeds raised through the offerings. He also received commissions ranging from 20% to 31% from the proceeds of the investments he sold to one investor. In total, Lewis received about $374,000 in commission payments from the Aegis offerings and $250,700 from the 7S offerings.
The SEC's complaint charges Lewis with violating Sections 5(a) and 5(c) of the Securities Act of 1933, and Section 15(a)(1) of the Securities Exchange Act of 1934.
Without admitting or denying the SEC's allegations, Lewis has consented to the entry of a judgment permanently enjoining him from future violations of the above provisions the federal securities laws, and ordering him to pay disgorgement plus prejudgment interest and a civil penalty, in amounts to be determined by the Court at a later date upon motion by the SEC.
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of elder abuse, exploitation and securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.
At the Boca Raton Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.