Who knows if that is exactly how Alan Todd May pitched unsuspecting clients with his Prosper Oil and Gas, Inc. a/k/a Prosper Energy, Inc. What is well alleged, is May took a bunch of people for a free ride and the SEC didn’t take kindly to it!
First, the SEC obtained an asset freeze against the company along with a temporary restraining order, civil Action No. 3:10-cv-425-L U.S.D.C./Northern District of Texas (Dallas Division). The court went along with it so Mays found himself unable to sell more oil and gas deals and likely locked out of his office.
According to the SEC, May, who is a convicted felon with a long criminal history of theft and fraud, went at it again. He conned $6 million smacks out of investors who were rubbing their hands together in contemplation of huge returns on investment. May placed a series of ads in various publications offering unregistered fractional, undivided royalty interests in oil and gas properties.
The purpose in selling undivided interests was likely to skirt securities laws. If all the partners were equal partners, it is harder to claim May was the sole management agent. In order to be a security, an investment must be managed by third parties.
The reality is, even undivided interests in partnerships constitutes securities in most cases. The SEC felt it did in this case. In fact, they allege profits presumably made and paid out to investors were done so via a ponzi scheme. There were no huge profits from Prosper and Prosper Oil and Gas Inc. Those who invested got the old suckeroo!
May took off from his wealthy Texas feeding grounds in order to avoid facing the music. United States Marshal Federico Rocha of the Northern District of California announced he got his man. Rip off artist May had made his way to San Francisco where he met his match, or maybe better said, he met his marshal!
The arrest was a result of the efforts of the Dallas Fort Worth Fugitive Apprehension Strike Team, the U.S. Secret Service and the Northern District of California Fugitive Task Force.
Just to be sure, nothing is offered for sale. The headline is to attract reader attention, and illustrate what a scam headline might look like. Now if you want to send a donation we would very much appreciate that! But please don’t expect anything more than great reporting in return!
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