Securities Commissioner Travis J. Iles on Feb. 9 entered an Emergency Cease and
Desist Order against two Dallas men who are soliciting $4.4
million for an oil and gas project without disclosing their history of unpaid
tax liens and allegations of fraud.
order names Jason A. Gilbert and Parker R. Hallam, who are doing
business through SourceRock Energy Phoenix Prospect LP and two
affiliated companies. The companies are based in Dallas.
to the order, Gilbert and Hallam are offering for sale interests in a single
well project in Sumner County, Kansas. Of the $4.4 million the pair say they
plan to raise, $1 million is supposed to be paid to one of their companies,
SourceRock Energy Partners LP, as a management fee.
and Hallam are telling investors that the remaining $3.4 million will be spent
to lease the land in Kansas and develop the well field. They are not, however,
disclosing that the estimated drilling costs are far lower – $750,000.
is also not disclosing that the Securities and Exchange Commission in 2016
named him as one of a dozen defendants in a lawsuit alleging oil and gas fraud
of $80 million.
consented to an SEC judgment in the case in the U.S. District Court for the
Northern District of Texas on April 18, 2017. Hallam agreed to pay disgorgement
of gains and a civil penalty to be determined by the SEC.
is not disclosing $548,041 in tax liens the IRS filed against him from 2009 to
2017. The IRS filed liens against Hallam in 2016 and 2017, which have an unpaid
balance of $142,672.
of Jan. 10, the liens had not been released.
failing to disclose material information about an investment or persons
offering the investment violates the anti-fraud provisions of the Texas Securities
Gilbert and Hallam are not registered to sell
securities. Neither are the SourceRock energy companies.