Last Updated: October 2026
The Texas State Securities Board (TSSB) announced that Bobby Lynn Teddlie entered a guilty plea to securities fraud and theft in the 238th Judicial District Court of Midland County, Texas. He was sentenced to 10 years, however the sentence was suspended and and he was placed on community supervision for eight years. As a part of the plea agreement, Teddlie was ordered to pay $75,000 in upfront restitution. According to the TSSB Teddlie operated a fraudulent scheme promoted through KCET Consulting Advisors LLC and Dakota Petroleum Group LLC. In sales pitches Teddlie misrepresented the safety of the investment by falsely stating that the funds would remain in an attorney escrow account. Teddlie also failed to disclose multiple material facts, including multiple prior civil judgements, outstanding federal tax liens and pending criminal indictments against him at the time of the investment solicitation.
“Fraudulent investment schemes undermine confidence in our financial markets and harm hardworking Texans. This case demonstrates the importance of strong collaboration among state agencies to protect investors. I appreciate the diligent work of our enforcement team and the Midland County District Attorney’s Office in securing this result and ensuring that those who violate the law are held accountable,” accrodng to Texas Securities Commissioner Jeramy Heintz.
Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.
FINRA Rule 2111- suitability -Regulation Best Interest
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