Payson Petroleum Securities Sales Investigated by Peiffer Rosca Wolf Securities Attorneys
Payson Petroleum Securities Sales Investigated by Peiffer Rosca Wolf Securities Attorneys on Behalf of Victimized Payson Investors
The Peiffer Rosca Wolf securities practice lawyers Alan Rosca and James Booker are investigating the sales practices of certain broker-dealer firms that sold interests in Texas oil and gas partnerships offered by Payson Petroleum, Inc. (“Payson”), Matthew Griffin, and William Griffin. Specifically, the Peiffer Rosca Wolf lawyers are investigating the sales practices of certain brokerage firms that recommended and sold Payson to investors without conducting adequate due diligence as to Payson, the offerings, and its principals before making such recommendations.
The Peiffer Rosca Wolf securities lawyers have already filed claims on behalf of Payson investors, arising out of allegedly inadequate due diligence by such investors’ financial advisors, and are preparing additional claims.
“Brokerage firms have a duty to reasonably investigate new investment products they bring to their customers’ attention,” said Alan Rosca, a member of the Peiffer Rosca Wolf law firm who is overseeing the Payson investigation. “Members of the investing public have the right to expect that when their investment advisors make an investment recommendation, those advisors have first researched the product they are recommending. We’ll continue to hold liable, on behalf of investors, those brokerage firms that disregard their duties to adequately investigate the investment products they recommend to their customers,” said Rosca.
The Payson programs at issue include Payson Petroleum Brown №1, L.P.; Payson Petroleum J.C. #1, LP; Payson Petroleum Jenny #1 L.P.; Payson Developmental Drilling Fund 2014 II, LP; Payson Drilling Fund 2015 I, LP; Payson Drilling Fund 2015 II, LP; Payson Petroleum Grayson 2 Well LP; Payson Petroleum Crowe 1, LP; Payson Petroleum 3 Well LP; and Payson Petroleum 3 Well 2014, LP.
Payson Petroleum’s Principals, Matthew Griffin and William Griffin, Accused of Securities Fraud by the Securities and Exchange Commission
Payson Petroleum principals Matthew Griffin and William Griffin were charged with securities fraud by the SEC in November 2016. The SEC alleged that the Griffins, through Payson, raised $23 million in a fraudulent offering in two Texas partnerships for the purpose of developing three oil and gas wells. According to the SEC, the Griffins misled investors about Payson’s compensation as the investment program’s sponsor and operator and Payson’s promised participation in the program.
The Griffins misrepresented that Payson’s consideration as program sponsor/operator/co-investor would be limited to 20% of any petroleum revenue generated by the wells, according to the SEC. Instead, as alleged by the SEC, Payson appropriated the entirety of the offering proceeds net of offering costs. Additionally, the Griffins misrepresented to investors that Payson would contribute 20% ($5.4 million) of the offering amount and that the cash would be used to cover 20% of the cost of the well and cover any cost overages in drilling and completing the wells, according to the SEC. However, Payson contributed no money to the offering and lacked the financial means to pay any cost overage, according to the complaint filed by the SEC.