SEC Files Complaint Related to Unregistered Oil and Gas Investments

In his Friday’s Fraud series, Spring 2014 Student Intern Benjamin Stubbs wrote about oil and gas investment frauds, encouraging investors to conduct research on those selling such investments before investing.

Stubbs’ advice came just a few days before the SEC issued a press release detailing a complaint against Behrooz Sarafraz.  The SEC alleged Sarafraz sold millions in oil and gas investments without being properly registered or associated with a broker-dealer.  The release reports that Sarafraz agreed to settle the charges by consenting to a $22 million dollar judgment.  The settlement is still subject to court approval.

When investing your hard-earned money, be sure you are working with a properly registered professional.  Use FINRA’s BrokerCheck tool as part of your due diligence before making any investment.