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Securities News Releases
Tuesday, October 31, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Carrie Bebermeyer, (573) 526-0949
Carnahan "Drills" Missouri Company Selling Interests in Oil and Gas Wells
Jefferson City, Missouri - Secretary of State Robin Carnahan's Commissioner of Securities, Matt Kitzi, recently issued a Cease and Desist Order against a St. Louis-area father and son team for offering and selling unregistered investments in oil and gas investment groups.
Scott Fleischmann and his father, Preston Fleischmann, along with four companies under their control, are suspected of having sold unregistered securities and committing fraud against investors.
According to the order, Scott Fleischmann contacted a 75-year old California resident about joining an oil and gas investment group. Fleischmann told the California resident that the investment group was going to purchase five oil wells located in Texas and that the Californian would hold 10% ownership of the wells.
In January of 2006, the California resident invested over $120,000 in the venture, but has yet to receive documentation of the purchase from the company, any monthly dividends or a refund of the initial investment. Despite Scott Fleischmann's initial assertion that these wells would allow investors to realize a profit, his father later stated that the wells were not doing well. This was just five months after the Californian's investment.
It appears that similar investments were offered and sold all across the country. The Securities Division has bank records that indicate the Californian's investment was used to make payments to earlier investors in Arkansas and Florida. Some of the money even went directly to Scott Fleischmann.
"I urge investors to be cautious when investing in oil, gas or alternative energy ventures," said Missouri Secretary of State Robin Carnahan. "There are legitimate offers out there, but investors should always contact the toll free investor hotline to check on the product and company or individual offering the investment to make sure they are properly registered with the Securities Division."
The companies included in the order are Energy Savings, LLC, of St. Louis, MO, Texas Energy Investment Solutions, Inc., of Wildwood, MO, The Energy Investment Group, of St. Peters, MO and The Energy Savings Group, LLC, of St. Louis.
For more information regarding investments and fraud protection, or for information regarding a company or representative, call the Missouri Investor Hotline toll-free at 1-800-721-7996 or visit the Secretary of State's web site at www.sos.mo.gov/securities.