SEC: Plano Oil Operators Used Investor Cash for Booze & Strippers

The U.S. Securities and Exchange Commission has charged three interconnected oil and gas companies and its executives with fraudulently scheming to raise $11.7 million for drilling projects allegedly located in Kentucky and using investor money for booze, drugs, strippers and alimony payments to the CEO’s ex-wife.

Lawyers with the SEC’s Fort Worth office say that AmeraTex Energy and Lewis Oil Company, which are based in Plano, and Lewis Oil Corp., which is headquartered in Kentucky, perpetrated a fraud to sell unregistered securities to more than 150 investors in 36 states, made false statements to investors and diverted money raised for personal pleasures.