Legal
SEC Charges Two Texas-Based Investment Advisors Over Alleged $18 Million Ponzi Scheme

SEC Charges Two Texas-Based Investment Advisors Over Alleged $18 Million Ponzi Scheme
The US Securities
and Exchange Commission has charged two Austin, TX-based
investment
advisors for allegedly operating an $18 million ponzi scheme
involving
purported investments in oil and gas projects.
According to a complaint filed by
the SEC last week, Robert Helms and Janniece
Kaelin misled investors about their experience in the oil and gas
industry
while raising nearly $18 million for supposed purchases of oil
and gas royalty
interests.
The SEC
alleges that Helms and Kaelin only used only a fraction of the
offering
proceeds for that purpose and that a vast majority of investor
funds were used
to make ponzi payments and cover various personal and business
expenses.
While
promising that they would use more than 99 per cent of the
investment proceeds to acquire oil and gas royalty interests,
they invested
only 10 per cent of the proceeds. The SEC said
Helms and Kaelin began offering investments in 2011 through
Vendetta
Royalty Partners and attracted at least 80 investors in more than
12 states.
The SEC’s
complaint also charges Deven Sellers of Arvada, CO, and Roland
Barrera of
Costa Mesa, CA, with illegally selling
investments for Helms and Kaelin without being registered with
the SEC. They
also allegedly misled investors about the sales commissions and
referral fees
they were receiving.