What Happened?
On May 14, 2015, the Securities and Exchange Commission (“SEC”) filed an emergency civil action against Sethi Petroleum, LLC and its president and sole managing member, Sameer Praveen Sethi, for offering fraudulent oil and gas investments.[1] The SEC alleged that the defendants carried on a fraudulent scheme and made materially false and misleading statements and omissions to potential and actual investors in order to offer and sell securities in a joint venture, raising more than $4 million from approximately 90 investors located in 28 states.[2] According to the SEC, the defendants falsely represented the use of the investment funds, partnerships with major oil and gas companies, and Sethi’s business and criminal background, among other things.[3]
This will be a multi-post blog series. In Posts 2 and 3, we will look at the specific allegations made by the agency and the relief granted by the court in this action. In Post 4, we will discuss what you can do to avoid investment scams.
This posting is intended to be a planning tool to familiarize readers with some of the high-level issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.
Steps have been taken to verify the contents of this article prior to publication. However, readers should not, and may not, rely on this article. Please consult with counsel to verify all contents and do not rely solely on this article in planning your legal transactions.
About the Author
So-Eun Lee – So-Eun Lee is an associate attorney in the New York office of The R. Shawn McBride Law Office, P.L.L.C. She concentrates her practice on business law. So-Eun can be contacted at: (347) 921-0173 or [email protected]. Her profile is available on www.mcbrideattorneys.com.
Shawn McBride – R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Office, P.L.L.C. which helps clients in legal issues related to starting companies, joint ventures, raising capital from and negotiating with investors and outside General Counsel functions. Shawn can be contacted at: 407-517-0064; [email protected], or www.mcbrideattorneys.com.
[1] See generally SEC v. Sethi Petroleum, LLC, Civil Action No. 4:15-CV-338 (E.D. Tex. May 14, 2015).
[2] Id. ¶¶ 1–2.
[3] Id. ¶ 2.