Cardinal Energy Group, Inc. and Timothy Crawford – SEC Charges with Fraud | Goodman & Nekvasil P.A. May Recover Investor Losses
Securities and Exchange Commission Charges Cardinal Energy Group and Timothy Crawford
ACCORDING TO THE SEC: On March 19, 2019, the Securities and Exchange Commission charged a Texas-based oil-and-gas penny stock company and its former CEO with fraudulently concealing the loss of the company’s major source of revenue.
According to the complaint, in mid-2017, Cardinal Energy Group, Inc. (“Cardinal”), based in Dallas, Texas, lost control of its interest in two oil-and-gas leases that accounted for nearly all of the company’s revenue. Following the bad news, the complaint alleges that Cardinal Energy Group, Inc. and its former CEO Timothy W. Crawford filed quarterly reports with the SEC that misrepresented to investors that the leases were still expected to be part of the company’s future business plans. During this period, while concealing the setback to the business, Cardinal Energy Group, Inc. and Timothy Crawford allegedly raised additional money from investors, misreported Timothy Crawford’s stock ownership, and Timothy Crawford failed to make the required disclosures that he sold millions of shares of Cardinal stock.
The complaint charges: Cardinal with violating the antifraud provisions of Section 17(a)(2) of the Securities Act of 1933 (“Securities Act”) and Sections 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and the reporting provisions of Sections 13(a) and 14(c) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, and 14c-6 thereunder, and seeks permanent injunctions and civil penalties. The complaint further charges Timothy Crawford with: (i) violating Section 17(a)(2) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; (ii) violating Rule 13a-14 of the Exchange for filing false Sarbanes-Oxley certifications in Forms 10-Q; (iii) violating the reporting provisions of Sections 13(d)(1) and 16(a) of the Exchange Act and Rules 13d-1 and 16a-3 thereunder concerning his Cardinal stock holdings and transactions, and (iv) aiding and abetting Cardinal’s violations of Sections 13(a) and 14(c) of the Exchange Act and Rules 12b-20, 13a-13, and 14c-6 thereunder; and seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, an officer-and-director bar, and a penny stock bar.
In related proceedings, the SEC also instituted administrative proceedings against Cardinal pursuant to Section 12(j) of the Exchange Act based on its failure to file quarterly and annual reports with the SEC, and issued an Order temporarily suspending trading in Cardinal stock.
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If you invested in Cardinal Energy Group, Inc., 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 Cardinal Energy Group, Inc. 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.
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