Commissioner files complaint against Texas oil company

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A Texas oil and gas company has allegedly violated Colorado’s anti-fraud and registration securities law.

Securities Commissioner Fred Joseph filed a complaint against Sethi Oil and Gas and two individuals, Sameer P. Sethi and Travis Burt, all from Plano,Texas.

The commissioner said the company engaged in a “persistent pattern of fraudulently offering to sell unregistered securities to Colorado investors.” The sales pitch continued even after the Division of Securities issued a cease and desist order to the company during November 2009.

The company is also accused of not telling potential investors about the cease and desist order, and failing to disclose information that Burt was convicted of felony arson. The complaint alleges that the defendants violated both the anti-fraud provisions of the state securities laws, but also violated the cease and desist order.

The company was attempting to raise $750,000 for drilling in the Fort Worth Basin, according to their brochures.