Commission Halts Unregistered Activity by Energy Investment Partners and John Robert Flournoy
HARRISBURG, Pa., July 13, 2012 /PRNewswire-USNewswire/ -- To halt the offer and sale of unregistered securities in Pennsylvania, the Pennsylvania Securities Commission (Commission) issued a Summary Order to Cease and Desist against Energy Investment Partners (EIP), an entity, and John Robert Flournoy (Flournoy), an individual, both with an address in Dallas, Texas. EIP was offering for sale working interests (Interests) in an oil and gas drilling program in Cheyenne, Nebraska called the Geu-Narjes Project (G-NP). Flournoy was the president of EIP.
In or about June 2012, a representative (Representative) of EIP cold-called at least one Pennsylvania resident (PA Resident) regarding an investment in the Interests and offered for sale the Interests to the PA Resident. The Representative stated that EIP is raising $550,000 for the G-NP project; that the PA Resident will receive a return of his original investment in four months; that the PA Resident will receive $7,500 per month for ten years on a 1% Interest; and that the PA Resident will receive $133,000 over ten years and a tax write-off of $44,000.
In or about June 2012, Flournoy e-mailed offering materials (Materials) to the PA Resident. The Materials state that EIP is offering for sale the Interests, each representing a 1% working interest in G-NP, for a cost of $7,500 each.
The PA Resident was not an accredited investor under Rule 501 of Regulation D, and did not have sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the investment. The PA Resident had no substantive, pre-existing relationship with EIP, Flournoy, or the Representative.
The Commission ordered Energy Investment Partners and John Robert Flournoy to stop offering or selling the Interests in the Commonwealth of Pennsylvania, in violation of the Pennsylvania Securities Act of 1972, and in particular Section 201 thereof.
Any further solicitations or sales made by EIP, Flournoy, or their affiliates in Pennsylvania will constitute further violations of the 1972 Act. Any person who is solicited by or has information about EIP or Flournoy is asked to immediately notify the Pennsylvania Securities Commission by calling the toll-free line 800-600-0007 (PA only); in Harrisburg (717) 787-8061; in Pittsburgh: (412) 565-5083; or, in Philadelphia: (215) 560-2088.
SOURCE Pennsylvania Securities Commission (PSC)
Share this article