A Texan company has been ordered to stop selling oil and gas interests in Colorado.
Brucemark Petroleum was told by the Colorado Securties Commissioner Gerald Rome that the company and its salespeople are not registered in the state for solicitation of securities.
A cease and disorcer was sent to the owners Bruce and Mark Rafael which cited the solicitation and sale of unregistered, non-exempt securities to Colorado investors.
The pair have now agreed to stop all solicitation and sale of oil and gas interests in the state of Colorado unless such offers comply with the Colorado Securities Act.
It was alleged that between February 2013 and November 2013, Colorado residents were cold-called and pitched interests in development programs for oil wells in Illinois.
According to reports, two investors who purchase such interests were over the age of 75.
Investigation revealed that the securities which were being solicited were neither registered nor exempt from registration with the commissioner.
It was also claimed the company misrepresented a number of details to prospective investors, including telling them field operations and project coordination would be conducted by and independent operating company.
However, it was alleged the company MDM Energy, is owned by a relative and operates from the same business address as Brucemark Petroleum.