Colorado Securities Commissioner Fred Joseph has entered a final cease and desist order against a Texas company, its president and a sales agent who sold the company’s securities in Colorado.
The order said that the company and two of its employees violated state laws regarding securities registration, licensing and anti-fraud provisions, regarding the offer and sale of securities in Colorado.
Named in the order are Langley Energy Inc., its president, Mike W. Langley, both from Dallas and one of its salesmen, Michael R. Murphy, from McKinney, Texas.
The cease and desist order, to which all respondents agreed, ordered them to immediately and permanently cease and desist from offering or selling securities in violation of the act.
The respondents failed to register the security offering and violated the Colorado Securities Act by offering the investment opportunity to the public at large by cold-calling prospective investors, the division said.
In addition, the company, Langley and Murphy attempted to sell the stock in Colorado without proper licenses and misrepresented – to investors – their role in management of the joint ventures.
“We continue to see many suspect oil and gas deals come through our office and Colorado investors must show caution,” Joseph said. “Oil and gas investments tend to be highly risky and unsuitable for traditional, smaller investors.”