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Your Daily (Seems Like It Anyway) New Ponzi Scheme Update

The SEC alleges that from at least June 2006 through January 2009, Provident [Royalties, LLC] made a series of fraudulent securities offerings involving oil and gas assets through 21 affiliated entities to more than 7,700 investors throughout the United States. Provident’s entities made some direct retail sales of securities, but primarily solicited retail broker-dealers to enter into placement agreements for each offering, and those retail broker-dealers sold the stock to retail investors nationwide.

Dudes were promising 18% returns and that 85% of funds would be invested in “interests in oil and gas real estate, leases, mineral rights, and interests, exploration and development.” SEC alleges that less than 50% of the funds received were used for such investments.
SEC Obtains Asset Freeze in $485 Million Nationwide Offering Fraud []