Gulf Coast Western Helps Protect Oil and Gas Investors From Fraud, Scams

DALLAS, April 14, 2010 /PRNewswire/ -- In today's economic climate, investors are rightly concerned about the safety and security of their investments. As Managing Venturer for oil and gas partnerships throughout the Gulf Coast region and southwest, Dallas-based Gulf Coast Western recognizes those concerns and complaints, and has taken steps to help potential investor partners make smart decisions.

"Education and awareness are an investor's first line of defense against potential fraud," says Matthew H. Fleeger, President and CEO of Gulf Coast Western. "We work hard to make sure our partners understand the risks and benefits of investing in oil and gas exploration."

In joint ventures sponsored by Gulf Coast Western, individual investor partners maintain an active role in the management decisions of their partnerships, which provides federal tax benefits associated with domestic oil and gas exploration.

Gulf Coast Western provides investors with suggestions on how to avoid scams and recognize potential investment fraud, including the addition of a Due Diligence section to the company's Web site (http://www.gulfcoastwestern.com). The site provides information to help deter fraud and answer common investor complaints.

Gulf Coast Western also goes to great lengths to help protect its joint venture partners. The company is even willing to take government agencies to court, as it did late last year when it countersued the Colorado Division of Securities to help protect its joint venture partners.

In the 2009 case Fred J. Joseph, Securities Commissioner for the State of Colorado v. Gulf Coast Western, et al., No. 09CV7181, Colorado regulators alleged that the oil and gas joint venture interests were securities, which would have substantial negative tax implications for investor partners. Colorado regulators made virtually identical claims in 2002 against HEI Resources, Inc, formerly Heartland Energy, Inc., a company whose assets were acquired by Gulf Coast Western in 2008. The state lost that case after regulators failed to prove that the joint venture interests sold by the company were securities.

"Financial fraud and investment scams are no doubt worrisome, but overzealous regulators often make knee jerk decisions to attack innocent investments," says Mr. Fleeger. "We do everything we can to protect our joint venture partners, so that the tax benefits associated with oil and gas exploration are not jeopardized by attacks on legitimate companies, partnerships and long standing legal precedent."

For more information, contact Matthew H. Fleeger at 1-800-284-1782 or [email protected].

SOURCE Gulf Coast Western

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