Four Texas oil and gas promoters have been ordered to stop allegedly fraudulent sales of unregistered securities in Iowa. The companies have also been directed to refund $2.1 million to 14 Iowans and legal fees related to charges of unregistered securities and securities fraud.
Iowa Insurance Commissioner Nick Gerhart has issued a summary order to cease and discontinue to Carson Energy, Inc. of Austin, Earl Carter Bills II of Austin, Anthony Weber of Austin and Jerrold S. Rothouse of Austin, said on Thursday in a news release .
“We have alleged that Iowans have been defrauded out of more than $2.1 million in an unregistered gas and oil investments,” Deputy Commissioner Doug Ommen said. “The Iowa Insurance Division is here to help protect our citizens from fraudulent schemes and whenever we see unlawful behavior, we try to move swiftly to take action.”
The companies will be allowed to request a hearing on the summary order and statement of charges within 30 days.