A cease and desist order has been issued against a Texas oil and gas company, its managing director and one of its sales agents for allegedly violating the securities registration and licensing provisions of the Colorado Securities Act in connection with the offer of securities in Colorado.
Colorado Securities Commissioner Fred Joseph today identified the company as the Dallas-based Mieka Corporation, its managing partner, Daro Blankenship, and Stephen Romo, one of Mieka’s sales agents. Both men are from the Dallas area, said Joseph.
During a hearing, the Colorado Securities Board heard that that Romo cold-called a securities division employee and offered the employee a joint venture interest in an oil and gas project being promoted by Mieka, which involved drilling two oil wells in Westmoreland, Pa.
Mieka was selling 25 “units” in the project for $158,400 for each unit.
Romo allegedly represented that the investment would be producing oil for 30 to 40 years, that the wells drilled in the area had a 97 percent success rate and that all partners could expect a 12 to 18 percent return on their investment.
The Colorado Securities Board determined that although joint venture was set up by Mieka as a general partnership under Texas law, the joint venture interests being offered were, in fact, securities under Colorado law.
Because the board found that the interests were securities, it also found that the company and the two men violated the registration and licensing provisions of the Colorado Securities Act.
Joseph said the finding by the securities board is “a very important decision.”
“With the high price of oil, investors in Colorado continue to be regularly solicited by oil and gas companies, touting these so-called joint venture interests,” he said. “These oil and gas promoters are now on notice that Colorado investors are entitled to the protections of our (securities) Act of full disclosure and regulatory oversight. We intend to ensure Colorado investors are afforded these protections.”Howard Pankratz: 303-954-1939 or Pankratz@denverpost.com.
