November 2016 -Dallas, Texas
Matthew Carl Griffin and his brother William Daniel Griffin were named in a civil action filed by the Securities and Exchange Commission (SEC) charging them with fraudulently offering interests through their company Payson Petroleum, Inc. , in two Texas partnerships.
The SEC alleges that in 2013-2014 the Griffins raised $23 million from about 150 investors for the purpose of developing 3 oil and gas wells. The Griffins are accused of misleading investors about Payson’s participation and compensation in the program.
According the to the SEC Payson was to contribute over $5 million up front to cover 20% of the cost and Payson would cover any cost overages beyond $24 million in completing the wells in the two partnerships. However, the SEC alleges that Payson contributed no money to the offering and and lacked the financial means to pay even the smallest cost overage.
The Griffins have agreed to an injunction, disgorgement and penalty, in an amount yet to be determined.
SEC records indicate that Payson Petroleum has offered a number of private placement limited partnerships in recent years, including:
- Payson Development Drilling Fund 2014 II
- Payson Drilling Fund 2015
- Payson Drilling Fund 2015 II
- Payson North Texas Multi-Well I
- Payson Petroleum 3 Well 2014
- Payson Petroleum Crowe 1
William D. Griffin’s FINRA records indicate that he was employed by D.H. Hill Securities, a Kingwood Texas based broker dealer, from 2/2016-10/2016.
Financial advisors recommending alternative investments such as oil and gas limited partnerships have a duty to disclose the risks associated with such investments. Furthermore financial advisors are required to make recommendations that are suitable , taking into account the investor’s age, level of financial sophistication, investment objectives and ability to withstand risk.
If you suffered losses in a Payson Petroleum limited partnership investment that was made on the recommendation of your financial advisor, you may be able to recover damages if that recommendation was unsuitable or if the investment was misrepresented to you.
Contact us for a no charge consultation.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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