SEC Files Civil Action Alleging Fraud by 2 Texas Energy Firms

WASHINGTON, D.C. - Two Texas firms and their principals are the subject of a civil action filed by the U.S. Securities Exchange Commission in which the SEC alleges that defendants defrauded investors in oil and gas securities offerings. SEC v. Overland Energy Inc., et al., No. 4:10-cv-613 (E.D. Texas).

The SEC filed the civil lawsuit on Nov. 9 in the U.S. District Court for the Eastern District of Texas against Overland Energy Inc., Acorn Energy Inc. and three individuals.

The lawsuit charges that Garry B. Smith and Robert J. Nelson and their two firms used unregistered sales agents and fraudulent …