Dallas-based Star Exploration being sued by the SEC

by PegNews wire

DALLAS — The Securities and Exchange Commission announced today that they have filed a civil action in Dallas federal court against Star Exploration, Inc. and its principal, James T. Gurgainers. The Commission alleges that the defendants conducted fraudulent oil and gas securities offerings between December 2005 and May 2008, raising over $12 million from over 160 investors nationwide. Upon the Commission’s request, the court appointed a receiver over the assets acquired with investor funds.

Specifically, the Commission alleges that, among other things, Gurgainers solicited investors for completion funds for dry holes, failed to use investor funds as offering materials represented, and improperly pooled and commingled investor funds from different ventures contrary to offering materials. The complaint further alleges that Gurgainers used offering proceeds from one entity to pay other entities’ expenses and diverted at least $700,000 for his personal use.

Source: SEC