7S Oil & Gas, LLC and William Alexander Sewell – Goodman & Nekvasil P.A. May Recover Investor Losses
Securities and Exchange Commission Charges 7S Oil & Gas, LLC and William Alexander Sewell
The Securities and Exchange Commission today announced that a Texas-based oil and gas company and its CEO have agreed to pay $750,000 for misleading investors about amounts spent on commission payments to sales agents and administrative expenses, and for misappropriating investor funds for personal expenses.
According to the SEC’s complaint, from approximately November 2014 through July 2016, 7S Oil & Gas, LLC and William Alexander “Gilligan” Sewell raised almost $7 million from at least 70 investors nationwide through a series of unregistered offerings in oil and gas projects. The SEC alleges that 7S and Sewell lured investors primarily through a network of sales agents and also a series of YouTube videos including one in which Sewell claimed that “for sure you will get some type of return because there’s no such thing as a dry hole,” as well as another video depicting oil gushing out of a well with Sewell commenting that “you got back gold coming out of that well.” The SEC also alleges that 7S Oil & Gas, LLC’s offering documents told investors that no more than 10% would be spent on marketing costs, commissions to sales agents, and salaries and that 85% of investor funds would be spent on oil and gas operations. In reality, as alleged in the complaint 7S Oil & Gas, LLC paid commissions as high as 35% to its sales agents out of investor proceeds and applied only at most 57% of investor funds toward operating the wells. 7S Oil & Gas, LLC and Sewell also allegedly used more than $90,000 in investor funds to pay tuition for his children, entertainment expenses, and other personal expenses. The SEC also alleges that 7S paid out sham “royalty payments” to some investors, which led investors to believe 7S Oil & Gas, LLC was making a return on their investment based on oil sold to an independent third party.
Investors in 7S Oil & Gas, LLC May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in 7S Oil & Gas, LLC, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in 7S Oil & Gas, LLC and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.