Diversified Oil and Gas – Fraudulent Sales Charges
Diversified and its Principal Officers Allegedly Raised at Least $17.4 Million from Approximately 440 Investors through Fraudulent, Unregistered Offerings of Stock and Bonds
Diversified, between 2006 and 2012, allegedly raised at least $17.4 million from approximately 440 investors nationwide through a series of fraudulent, unregistered offerings of stock and bonds, according to a Cease and Desist Order from the SEC. Diversified, a Delaware corporation founded in 2006 and located in Tequesta, Florida, was dissolved on April 28, 2014.
Diversified allegedly claimed that it was primarily engaged in the business of buying and selling fractional interests in oil and gas producing properties, and commodities trading in the futures market, according to said SEC documents. Diversified, the SEC notes, has never been registered with the Commission nor registered any offering of securities under the Securities Act.
Diversified, the SEC further alleges, filed nine Forms with the SEC between 2007 and 2012 claiming exemptions under the Securities Act for approximately $19 million in stock and bonds in nine purportedly separate offerings but did not file Forms for an additional $8 million in stock and bonds in five other purported separate offerings. Diversified allegedly made material misrepresentations and omissions about its financial performance and use of industry experts and technologies in its offering material to investors, the SEC also notes.
Diversified Hired Unregistered Sales Agents to sell Its Bonds, Paying Commissions of 5% or 10% of Investor Proceeds
Starting in 2009, Diversified also hired unregistered sales agents to sell its bonds, paying them commissions of 5% or 10% of the investor proceeds, according to a Cease and Desist Order from the SEC. Diversified allegedly employed the unregistered sales agents to raise money for Diversified, the SEC further alleges, even after receiving an email and other correspondence from Diversified’s outside counsel detailing the limits on its use of unregistered sales agents.
One of Diversified’s top grossing independent sales agents was Dennis Keith Karasik, who had a limited liability partnership CKA. On July 8, 2014, the SEC notes, FINRA imposed a bar from association with any FINRA member firm against Karasik in connection with Karasik’s offer and sale of Diversified’s bonds.
The Peiffer Rosca Wolf Investment Recovery Lawyers Often Represent Investors
The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment misconduct may contact the investment recovery lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.