The Securities and Exchange Commission on Friday announced fraud charges against two Gallatin men in connection with an oil drilling business.
David R. Greenlee and David A. Stewart Jr. are charged with facilitating a $15 million scheme involving oil wells in Texas, Kansas and Oklahoma. The SEC complaint alleges that investors were promised large profits of 15 to 55 percent.
Instead, the two men were not registered to sell investments and used fake names to conceal prior criminal records, according to the complaint. Most of the money raised went to paying themselves and a team of salesmen, with only a minimal amount of money used for oil production, mostly for show.
A third man, Richard P. Underwood of Fort Lauderdale, Fla., also was charged for his role in supervising the sales team. The complaint was filed in federal court in Savannah, Ga., and the U.S. attorney in that district has announced parallel charges.
The SEC seeks the lost money plus interest as well as injunctions.