U.S. SEC Oil Drilling Offer Scam

On 11 August, SEC charged promoters with oil drilling investments.

  • Charged David Greenlee, David Stewart Jr. with orchestrating $15mn scheme

Alleged Violations

  • Lured investors by false promises of high returns from oil drilling investments.
  • Network of salesmen sold stakes in companies purportedly using innovations.
  • Enhanced oil recovery techniques, like fracking to extract and sell oil in wells.
  • Investors were allegedly promised profits of 15% to 55% a year, for decades.
  • Defendants were not registered and used fake names to hide criminal records.
  • Diverted nearly two-thirds of the money to pay themselves and the salesmen.

Salesmen Charged

  • Richard “Ric” Underwood alleged to have helped draft false offering brochures.
  • Oversaw a boiler room team of telemarketers in Florida, solicited US investors.


  • SEC seeks repayment of ill-gotten gains, interest and penalty and injunctions.
  • Cited previous investor alert on fraud risks in private offerings for oil-and-gas.
  • US Attorney in Georgia criminal charges of Greenlee, Stewart, and Underwood.