Oil and Gas Company and Its Founder Charged with Fraud
From the Desk of Jim Eccleston at Eccleston Law LLC:
The SEC filed suit against Texas businessman Brian J. Polito and his company GC Resources, LLC for defrauding investors through the sale of interests in oil and gas wells that the company never owned.
According to the SEC, Brian J. Polito raised approximately $11.8 million through GC Resources, 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 to pay for Ponzi-type returns to investors and to purchase luxury cars, designer watches, and exotic vacations for himself.
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