Securities and Exchange Commission Seeks $2.5M Penalties From Lawyer for Alleged Securities Fraud
Last June a Texas lawyer was charged by the SEC for allegedly bilking his investors in relation to two securities offerings, one involving an oil and gas exploration venture and the other a fracking water filtration business deal.
January 12, 2016 at 09:00 AM
3 minute read
Last June a Texas lawyer was charged by the U.S. Securities and Exchange Commission for allegedly bilking his investors in relation to two securities offerings, one involving an oil and gas exploration venture and the other a fracking water filtration business deal. The case was filed against defendant Gregory G. Jones, a Texas attorney, and Aquaphex Total Water Solutions in U.S. District Court for the Northern District of Texas, Fort Worth Division.
Recently in the latest round in the heated litigation, the SEC filed a motion for summary judgment. In its brief in support of the motion for summary judgment, the SEC asserts that Jones should be ordered to pay the following: a total maximum civil penalty of $2,530,000, disgorgement of $985,000 and an additional disgorgement of $480,000, with prejudgment interest of $17,042.39.
As far as the background of the case goes, the SEC in its original complaint contended that in 2009, Jones represented a group of French and Swiss investors that invested approximately $6 million in an entity called Edwards Exploration. Jones had an agreement with Edwards Exploration in which it was to pay Jones for performing certain services, including providing due diligence in connection with the French and Swiss investors' shares.. According to the SEC, Jones ultimately received approximately $480,000 under this agreement. But he did not disclose to the investors that the $480,000 he received came from the investors' principal, the SEC contended.
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