We write today about an action filed by the Securities and Exchange Commission (SEC) against Jeffory D. Shield, Geodynamics, Inc., and numerous other Geodynamics-affiliated entities, for allegedly operating a multimillion-dollar fraudulent scheme involving oil and gas investments. According to the complaint, defendants “defrauded over 60 investors of at least $5 million since January 2010 through fraudulent and unregistered securities offerings of interests in four oil and gas investments, attracting investors through boiler-room cold calls.” The complaint further alleges that the defendants “continue to seek new investors in their fraudulent scheme.” The six-count complaint alleges that Shields and Geodynamics violated various provisions of the Securities Act and the Exchange Act, and seeks, among other things, temporary and permanent injunctive relief to prevent the “offering and selling of Geodynamics Securities and from violating the federal securities laws,” “an accounting of all funds received from investors,” “an Order freezing the assets of Defendants,” payment of “civil money penalties,” and “disgorge[ment] of all illegal gains.”

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Source: Financial Fraud Alert
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