On October 20, 2014, the Securities Commissioner of Texas issued an emergency cease and desist order against oil and gas investment company, Quixote Xploration, LLC and its CEO, James Bona.

According to the order, Quixote Xploration has been advertising and soliciting investors to purchase a “16% working interest” in a prospect located in south Louisiana called Powell Prospect for $50,000.  The company advertises on various social media sites such as LinkedIn, and Youtube and tells investors they are a “recourse exploration company that specializes in oil and gas exploration investments” and seeks to “bring select private investors low risk investment opportunities in the oil and gas industry”.

These promise are a farce. At the time Quixote was offering these investments they did not even own an interest in or share of the Powell Prospect. They have not registered any interests or shares, nor have they even been granted a permit for their sale. According to Quixote they are “relying on federal and state exemptions from securities registration requirements” such as Reg D exemptions.

Not only has Quixote been lying to investors and performing fraudulent oil and gas investments, they also failed to disclose James Bona’s lengthy criminal history to investors.  According to the order, On March 18, 2013 Bona was sentenced to 98 months in Florida State Prison for fraudulent securities transactions and grand theft. He was also ordered to pay $619,000 in restitution which has still not been repaid.  On August 30, 2004 Bona was sentenced to 3 years’ probation for dealing in stolen property and on November 17, 2000 he was sentenced to 33 months in Florida State Prison for two counts grand theft. This sentence was followed by 12 years’ probation.

Oil and gas investments are an up and coming means of defrauding investors. With the increased demand for oil and gas it is no surprise that stock brokers are using this as their new means of soliciting customer funds. Brokers and brokerage firms offer oil and gas investments through private placement investments in oil and gas ventures. These investments typically involve large upfront fees and promise little no risk and high investment returns or interest. While there are some legitimate oil and gas investments out there, a large amount are like Quixote and are fraudulent transactions.

If you, like thousands of other people, have already fallen prey to a corrupt broker by way of an oil and gas investment, please do not feel alone and do not be embarrassed. The dedicated attorneys at Fitapelli Kurta have extensive experience handling these matters. In fact, our firm prosecutes cases nationwide on behalf of investors like yourself. The law provides you with an avenue for recovery in these cases, but time is of the essence so please, do not delay. Call Fitapelli Kurta today for your free case evaluation. All of our cases are taken on a contingency fee basis. If you don’t win, we don’t win. Call now.