Texas Securities Commisioner Shuts Down Unregistered Sale of Oil & Gas Royalties

Texas Securities Commisioner Shuts Down Unregistered Sale of Oil & Gas Royalties 150 150 Robert Rex, Esq.

March 25, 2015-Austin, TX

John Morgan, Securities Commissioner for the State of Texas, entered an Emergency Cease and Desist Order against Lonestar Mineral Assets or Dallas and Colleyville, TX, and its owner Kenneth W. McKay of Dallas/Ft. Worth, TX.

The Order alleges that Lonestar and McKay have been  offering investments in mineral royalty rights in Texas though a publicly accessible website to non accredited investors. In addition the investments they are offering have not been registered. McKay and Lonestar are charged with failing to disclose prior securities problems involving McKay:

  • In 1997, McKay consented to a final judgement with the SEC in which he was found liable for  disgorgement of over $1 million and enjoined from selling securities in the form of interests in oil, gas or other minerals without filing a registration statement with the SEC. SEC v. Offshore Financial Corp., Kenneth McKay, et al.
  • In 1998 McKay was found guilty of securities fraud, sentenced to serve 12 months and a day in prison and to pay restitution of $7.6 million. As of April 2012, the outstanding balance of restitution was over $12 million.  United States v. William D. Brosseau and Kenneth McKay. 
  • From April 2004-June 2012 the United States filed several applications for writs of garnishment or execution seizing a motorcycle and a truck from McKay as well as freezing one of his bank accounts.

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.

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