Couch Oil & Gas / Fraud
Irving, TX. September 16, 2014. Colt Ledger & Associates, Inc. has just completed an exhaustive investigation into the oil and gas drilling programs of Couch Oil & Gas, Inc. of Irving, Texas. The results of that investigation have been compiled into a “Research Report” backed by apparently irrefutable facts that will lay the foundation for the complaints being filed with the SEC, FBI, USPS, IRS, USSS multiple State Securities, and prosecutorial agencies.
Couch Oil has over 1100 separate allegations filed against them, including but not limited to selling unregistered securities, general solicitation, wire fraud, money laundering, elder fraud, mail fraud, and bank fraud.
After searching the SEC's Electronic Data Gathering, Analysis and Retrieval system, CLA was unable to confirm registrations for the project(s) in which CLA clients invested in. It also appears that Couch Oil failed to license its agents with the Federal Government and/or in the states they were selling in, resulting in what appears to be illegally offering securities to numerous CLA clients.
After a thorough investigation, it appears that Couch Oil appears to have failed to properly vet CLA clients to ascertain if their offer(s) were suitable for the client. It seems that Couch Oil failed in discussing, uncovering or addressing clients with financial and investment goals, risk tolerance and/or current financial positions so as to understand or evaluate the clients suitability to participate in their offering(s).
On the subject of suitability, the SEC states that, "When your broker recommends that you buy or sell a particular security, your broker must have a reasonable basis for believing that the recommendation is suitable for you. In making this assessment, your broker must consider your income and net worth, investment objectives, risk tolerance, and other security holdings."
The new FINRA statutes states in SR-FINRA-2010-039, rule 2111, that a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer's investment profile. A customer's investment profile includes, but is not limited to, the customer's age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.
The investigation revealed that Couch Oil appears, according to authorities, to have violated U.S. Codes §1341: Frauds and Swindles and §2326: Enhanced Penalties for targeting a person over the age of 55, leaving them also open to §2327: Mandatory Restitution. By definition, elder fraud is an act targeting older adults in which attempts are made to deceive with promises of goods, services, or financial benefits that do not exist, were never intended to be provided, or were misrepresented. Financial exploitation is the illegal or improper use of an older adult's funds or property.
It appears that Couch Oil also failed to disclose “material facts”, such as numerous documented violations of Securities regulations.
Couch Oil appears to have knowingly and willfully violated basic securities regulations that possibly led to criminal activity. Clients have provided Colt Ledger and Associates, Inc. with sworn affidavits stating that they were made promises by Couch Oil, and in turn, invested their money only to see little or no money in return. Couch Oil appears to have fraudulently taken almost $5.3 million combined from 59 of Colt Ledger & Associates Inc. clients.
Colt Ledger & Associates has filed the complaints with the proper authorities, in which they will now handle the cases accordingly.The public is reminded that a complaint only contains allegations and is not evidence of guilt. Everyone is presumed innocent unless and until proven guilty.
Anyone having experience with Couch Oil, pro or con, is urged to contact Colt Ledger & Associates, Inc.