After a four-year challenge, Colorado Springs-based oil and gas exploration company HEI Resources Inc. received a favorable judgment from Denver District Court.
The Securities Commission filed the suit to expand its regulatory authority by designating interests in joint -venture partnerships as securities, despite contrary rulings by a federal district court, the Colorado Securities Board, and a Colorado jury, according to a recent HEI news release.
Following a seven-day trial–during which the court heard testimony from experts and more than a dozen joint-venture partners–the Denver District Judge Michael A. Martinez issued a 33-page order, outlining findings in the case and his decision that joint-venture interests offered by HEI are not securities.
“It’s unfortunate that I have spent the time, money, and emotion defending against these baseless claims, but I have an obligation to my employees and my partners to fight these claims and preserve the ability of my partners to continue to enjoy the benefits of direct participation programs,” said President and CEO Reed Cagle in the news release.
“Colorado is my home,” said Cagle. “I have raised my family here, and HEI supports the local economy, multiple charities, and provides jobs and support for dozens of families in Colorado. This ruling is a tremendous victory for us all.”
Cagle founded HEI Resources in 1997 for the acquisition, exploration and development of domestic oil and gas reserves.
For more information, visit www.heipartners.com.