The Colorado Securities Commission has reached a settlement with a Colorado Springs company for allegedly using unlicensed sales agents, said Commissioner Fred Joseph.
Brian Sullivan, Daniel Sheriff and Fairfield Energy agreed to a permanent injunction that does not allow them to further violate the registration, licensing and anti-fraud provisions of the Colorado Securities Act. In addition, the company will pay $975,000 in restitution to its investors.
In his complaint, the commissioner said that Sullivan and Sheriff defrauded dozens of investors in connection with offering investments in Fairfield’s oil wells and oil drilling equipment. It was alleged that the company used unlicensed sales agents, some with criminal histories, to cold-call investors nationwide using canned scripts and statements to falsely promote investors. The two are also accused of failing to disclose their prior legal troubles with securities regulators, the risk associated with oil and gas investments, prior failures in which they had to plug wells and the compensation that was paid to the sales agents.
“We continue to see suspect oil and gas deals come through our office,” said Joseph. “Oil and gas investments tend to be highly risky and unsuitable for traditional, smaller investors. Investors should be wary of any investment opportunity when they are cold called by promoters, and check these offerings with our office.”