SEC Charges: PetroRock Mineral Holdings and Homebound Resources
The White Law Group is investigating securities claims involving PetroRock Mineral Holdings, LLC, a subsidiary of HomeBound Resources LLC. The Securities and Exchange Commission reportedly imposed remedial sanctions and a cease-and-desist order against Homebound Resources, and its two owners on September 24, 2021.
The agency alleged that sales agents acting on behalf of the two indvividulas who controlled Homebound sold more than $350 million of debt and equity securities in unregistered offerings, based on working interests in oil and gas wells, to retail investors.
The two individuals allegedly failed to sufficiently support projections of future oil production, made statements about potential tax benefits that were unavailable to certain investors, overstated cash reserves, and made incomplete disclosures regarding potential uses of investor funds, including the amount of funds that would be used for payments to prior debt and equity investors, according to the commission. These statements and omissions were allgedly materially misleading.
Promissory Notes – PetroRock Mineral Holdings
According to the SEC’s complaint, the respondents sold promissory notes that related to a loan to PetroRock. Those notes may have been sold with misrepresentations about the output of oil wells. Further, the offering materials allegedly failed to account for the ultimate use of investor funds, as well as the tax treatment of the investments.
The SEC alleges that investor funds may have been used to pay off earlier investors, or to pay off undisclosed related parties in an unrelated equity transaction.
HomeBound Resources, based in Irving, Texas, reportedly focuses on developing oil and gas properties in known productive regions and fields, according to its website. The company is currently concentrating on the Midland Basin, Central Platform and Permian Basin as well as the Eastern Shelf of Texas. According to SEC filings, the company filed a Form D to raise capital from investors in 2014. According to the filings, the offering type was mineral property securities, and the total offering amount was reportedly $2,622,000.
If you are concerned about your investment in PetroRock Mineral Holdings or Homebound Resources, the White Law Group may be able to help you. To speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit?https://www.whitesecuritieslaw.com.
Tags: HomeBound Resources, Petrorock Mineral Holdings Last modified: July 19, 2023