The Securities and Exchange Commission (SEC) filed a civil action charging Matthew Griffin and William Griffin with fraudulently offering two Texas oil and gas partnerships, Payson Petroleum 3 Well 2014. Allegedly, between November 2013 and July 2014, the Griffins conducted a fraudulent offering of interests raising $23 million from 150 investors. This was allegedly for the purpose of developing three oil and gas wells. According to the SEC, the Griffins misled investors about Payson’s participation in the program, as well as other aspects of its compensation. Their offering materials also contained numerous misrepresentations and omissions. These included the fact that Payson would contribute an up-front 20% of the offering amount in the amount of $5.4 million and that it would cover 20% of the cost of the wells, and that Payson would cover any cost overages beyond the estimated $24 million. The SEC found these representations to be false, because Payson paid nothing toward the cost of the wells. The company also lacked the financial means to do so. Payson has raised tens of millions of dollars through the following private placements:
Payson Petroleum, Inc.;
Payson Petroleum Jenny #1, LP;
Payson Petroleum J.C. #1, LP;
Payson Petroleum Grayson 2 Well, LP;
Payson Petroleum Crowe 1, LP;
Payson North Texas Multi-Well L, LP;
Payson Petroleum Brown No. 1 LP;
Payson Petroleum 3 Well, LP;
Payson Petroleum 3 Well 2014, LP;
Payson Developmental Drilling Fund 2014 II, LP;
Payson Drilling Fund 2015 1, LP; and
Payson Drilling Fund 2015 II, LP
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