Securities Fraud Investigation (Alleged Ponzi Scheme)
Did you invest in Provident Royalties, Shale Royalties or Provident Energy LP?
SEC formally charged Provident Asset Management LLC, Provident Royalties LLC, as well as their founders on July, 2009. They were charged with allegedly running a $485 million Ponzi scheme to defraud natural gas and oil investors, which lead to a securities fraud claim being brought up by the SEC. The civil complaint filed by the SEC stipulates that ‟Provident made a series of fraudulent offerings of preferred stock and limited partnership interests for the purpose of generating promised returns through investments in oil and gas assets”. They proceeded to sell them to approximately 7,700 investors between June 2006 and January 2009. The SEC further alleges that Provident had made promises of yearly returns of up to 18%, which were to be achieved by investing 85% of the funds in oil and gas real estate, mineral rights, interests, exploration and development, and leases, but in reality only about 50% of the funds were used for these investments. Most of the money was allegedly being used to pay investors from previous offerings.
Sonn Law Group is currently conducting an investigation into the sale of securities in Provident Royalties or any of its related affiliates, including Shale Royalties, Provident Asset Management and Provident Energy LP by a variety of brokerage firms throughout the country, including Workman Securities and Philip Roy Financial.
If you have information or wish to discuss your rights as an investor, contact us at 844-689-5754 or contact Jeff Sonn, Esq. at [email protected] or Brian B. Pastor at [email protected], or Jennifer Poole Farrar at [email protected], or Adolfo J. Anzola at [email protected]