Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Recent SEC Releases
« Key Player In $150 Million Ponzi Scheme Gets 1-Day Sentence | Main | MLM Law Firm Pays $1.175 Million To Settle Zeek Receiver's Lawsuit »

Texas Man Charged With $4.5 Million Oil-And-Gas Ponzi Scheme

A Texas man is facing criminal charges on allegations that he ran a $4.5 million Ponzi scheme through the sale of purported interests in oil and gas wells.  William Allen Risinger was charged with three counts of wire fraud and one count of money laundering in an indictment that was filed in May 2015 but only recently unsealed following Risinger's arrest.  The wire fraud charges carry a maximum 20-year term per count while the money laundering charge carries a maximum 10-year prison term.  Risinger is currently free on a $50,000 bond. 

According to the indictment, Risinger formed RHM Exploration in November 2010.  Risinger solicited potential investors through the sale of interests in various oil and/or gas wells.  For example, investors were given the opportunity to purchase units in the RHM-Sinton Joint Venture (the "SJ Venture") from December 2010 to August 2012.  Investors were told that the SJ Venture would sell ten units for $60,000 each, with RHM purchasing one unit and the remaining nine units available for purchase by investors.  Investors were further promised that funds would be kept in an account at JP Morgan, that they would be used as described in offering documents, and that none of the funds would be used to pay sales commissions. 

However, RHM never purchased an investment unit in the SJ Venture.  Instead, RHM sold over 20 investment units to investors, resulting in the receipt of over $1.2 million and thus diluting the membership interest promised to potential investors.  RHM also allegedly used funds for unauthorized purposes, including making Ponzi-style payments to existing investors and the payment of sales commissions.  As the funds were not used as promised, a lien was ultimately filed - but not disclosed to RHM investors - against the mineral lease purportedly at the center of the investment. The Indictment alleged that similar misrepresentations and omissions were made in connection with several other mineral lease offerings.  Risinger ultimately raised over $4 million from several dozen investors. 

The government indicated in the indictment that it is seeking the forfeiture of a residence in Round Rock, Texas, multiple bank and brokerage accounts, and even a 4-seat Cessna airplane.  A copy of the indictment is below:

Risinger Indict

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (3)

References allow you to track sources for this article, as well as articles that were written in response to this article.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>