Oil and Gas Company and Founder Plead Guilty to Ponzi Scheme
From the Desk of Jim Eccleston at Eccleston Law LLC:
The SEC accused GC Resources, LLC and its owner and sole operator, Brian J. Polito, of defrauding investors through the sale of interests in oil and gas wells that the company never owned.
The SEC alleges that GC Resources, through Polito, raised approximately $11.8 million by creating a fake agreement with a well-known oil company that purported to give GC Resources the right to sell interests in certain oil wells. Polito forged signatures on the false contract and used it to lure investors to purchase interests in the wells GC Resources claimed to own. Polito then used investor money for Ponzi-type payments back to investors and to purchase luxury cars, designer watches, and exotic vacations for himself.
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Tags: SEC, Jim Eccleston, Eccleston Law, Oil and Gas, GC Resources, Brian J. Polito