An Indiana company has been ordered to stop selling securities in Colorado for gas wells in Texas, Louisiana and Michigan.
Earth Energy Developments from Jeffersonville, Ind., its former manager Jason Towe of Bowling Green, Ken.; and three of its salespeople have been issued a final cease-and-desist order from the Colorado Securities Commission. The three salespeople named in the order are Bill Lawrence of Hillview, Ken.; Teresa Floyd, of Shepherdsville, Ken.; and Mark D. Long of Louisville, Ken.
Commissioner Fred Joseph alleges that the salespeople attempted to solicit an investor in various oil and gas interests offered by the company. The company also failed to register the security offering, and by offering the investments to the public at large, violated Colorado state law.
The Division of Securities also believes the company sold stock in Colorado without proper licenses and alleges that the company violated anti-fraud provisions of the securities law. The company did not disclose that Long is a named defendant in an enforcement action by the Securities and Exchange Commission, nor did it tell investors that his securities license was revoked in 1993. The Pennsylvania Securities Commission also issued a cease-and-desist order against the company, Joseph said.