PLANO, Texas (CN) – Texas Securities Partners defrauded 500 investors of $12.7 million in unregistered oil and gas securities, for which its boss Tony E. Morrison promised 80 to 120 percent returns in one year, the SEC claims in Federal Court.
Morrison, 38, of Mansfield, Texas, claimed $1.2 million in “commissions” for his business, which he advertised on the Internet and in cold calls, the SEC said.
The agency said it “reviewed” more than 1,600 of the cold calls: “In them, TSP representatives made material misrepresentations and omissions concerning, among other things, past performance, expected returns, and risk. For example, TSP representatives told investors that (i) a previous TSP offering resulted in a $30 million return to investors; (ii) the investment would payout: (A) 80% to 120% cash-on-cash return in the first year; (B) 9 to 1 (900% return); and (C) $5,800 per month per 1% ownership interest; (iii) no TSP project had resulted in a dry hole since 2005; and (iv) this investment is a ‘sure thing.’
“These representations were false.”
The SEC wants an injunction, disgorgement of $1.2 million plus $52,802 in interest, and other relief.