Joseph Sarachek
Search
Have you stopped receiving monthly payments from PetroRock Mineral Holdings?
PetroRock Mineral Holdings, LLC (PetroRock) is a Texas entity formed on March 17, 2014, with a principal place of business in Irving, Texas. PetroRock is responsible for acquiring oil and gas leases. PetroRock is a subsidiary of HomeBound Resources, LLC also a Texas entity.
The Securities and Exchange Commission imposed remedial sanctions and a cease and desist order against Homebound Resources, Thomas J. Powell and Stefan T. Toth
To review order: https://www.sec.gov/litigation/admin/2021/33-10987.pd
It is alleged that:
Salespeople acting on behalf of Powell and Toth 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 investor.
Powell and Toth provided insufficiently supported 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. Powell and Toth should have known that their statements and omissions were materially misleading.
Among the problem offerings were the promissory notes that the Respondents sold relating to a loan to PetroRock. Those notes may have been sold accompanied by misrepresentations as to the output of oil wells.
The offering materials may also have inadequately accounted for the ultimate use of investor funds.
The offering materials may have included misrepresentations about the tax treatment of the investments.
Investor funds may have been used to pay off earlier investors, or to pay off undisclosed related parties in an unrelated equity transaction.
All these facts give investors causes of action to recover.
We are an investor rights’ law firm that fights to get investors back their hard-earned money. For over 30 years the Sarachek Law Firm has been at the forefront of major cases, such as Madoff, Stanford International Bank, and MF Global and has recovered money for thousands of creditors.
We represent several PetroRock investors and are working to assist them in the recovery their investments.
We work on a contingency fee basis. Our clients pay us only if we get recovery for them. No recovery, no fee.
Contact Us Today For Additional Information and Speak to Zachary Mazur
(646) 519-4396