raised almost $7 million from at least 70 investors ... · Case 1:17-cv-22914-XXXX Document 1...
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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO.: SECURITIES AND EXCHANGE COMMISSION, Plaintiff, V. 7S OIL & GAS, LLC and WILLIAM ALEXANDER SEWELL, Defendants. COMPLAINT Plaintiff Securities and Exchange Commission alleges and states as follows: I. INTRODUCTION 1. The Commission brings this action to enjoin 78 Oil & Gas, LLC ("78") and William Alexander Sewell ("Sewell") (collectively, "Defendants") fr om further violations of the anti-fraud and registration provisions of the federal securities laws. 2. From approximately November 2014 until July 2016, 78 and its principal Sewell raised almost $7 million fr om at least 70 investors nationwide through a series of unregistered, fr audulent offerings of securities. The securities were in the form of joint venture "units" in eight Texas-based oil and gas development projects managed by 78 and Sewell (collectively, the "78 JVs"). 3. 78 solicited investors primarily through a network of independent sales agents located throughout the country who would "cold call" potential investors. They also solicited past investors in a prior oil and gas investment. The purported purpose of the 78 offerings was to fund oil and gas development projects that 78 and Sewell were to oversee. Case 1:17-cv-22914-XXXX Document 1 Entered on FLSD Docket 08/01/2017 Page 1 of 14
Transcript of raised almost $7 million from at least 70 investors ... · Case 1:17-cv-22914-XXXX Document 1...
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO.:
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,V.
7S OIL & GAS, LLC
and
WILLIAM ALEXANDER SEWELL,
Defendants.
COMPLAINT
Plaintiff Securities and Exchange Commission alleges and states as follows:
I. INTRODUCTION
1. The Commission brings this action to enjoin 78 Oil & Gas, LLC ("78") and
William Alexander Sewell ("Sewell") (collectively, "Defendants") from further violations of the
anti-fraud and registration provisions of the federal securities laws.
2. From approximately November 2014 until July 2016, 78 and its principal Sewell
raised almost $7 million from at least 70 investors nationwide through a series of unregistered,
fraudulent offerings of securities. The securities were in the form of joint venture "units" in
eight Texas-based oil and gas development projects managed by 78 and Sewell (collectively, the
"78 JVs").
3. 78 solicited investors primarily through a network of independent sales agents
located throughout the country who would "cold call" potential investors. They also solicited
past investors in a prior oil and gas investment. The purported purpose of the 78 offerings was
to fund oil and gas development projects that 78 and Sewell were to oversee.
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