Texas oil company barred in Colorado

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An oil and gas company from Texas has been permanently barred from doing business in Colorado after allegedly violating the securities registration and anti-fraud provisions of the Colorado Securities Act.

Sethi Oil and Gas and its founder Sameer P. Sethi agreed to stop offering or selling any security in or from Colorado or otherwise engaging in conduct in violation of Colorado law.

“With the number of complaints we are receiving on oil and gas deals, investors need to be particularly cautious before investing in any oil and gas venture,” said Securities Commissioner Fred Joseph. “Oil and gas ventures are very speculative and highly illiquid. And even where the underlying project is legitimate, any profits can vanish through high sales commissions and other expenses taken by the promoters.”

Joseph said the company “engaged in a persistent pattern of fraudulently offering to sell unregistered securities to Colorado investors. ” These attempts continued even after Joseph issued a cease-and-desist order barring unregistered securities. The complaint also alleges the company failed to disclose the nature of their compensation, and that one of their sales agents had been previously convicted of felony arson.