On behalf of MihalekLaw posted in Securities Law on Tuesday, November 3, 2015.
The several definitions of the word “chimera” include “a monster from Greek mythology that breathes fire and has a lion’s head, a goat’s body, and a snake’s tail.” But the people who lost everything they sank into Chimera Energy stock might well prefer another definition Merriam-Webster provides for “chimera”: “something that exists only in the imagination and is not possible in reality.”
Chimera Energy boasted of its licensing of the China Inland Oil Exploration Company’s eco-friendly “nonhydraulic extraction” process. Problem: there is no “nonhydraulic extraction” and there is no China Inland Oil Exploration Company. Both are fictions, according to a recent ruling by a federal judge.
Those fictions undoubtedly boosted sales of Chimera Energy. The man who founded the company sold 6.1 million shares of stock to the public. The unregistered sales put $4.1 million in his pockets, the Securities and Exchange Commission says.
The federal judge recently ruled the man is liable for securities violations involving Chimera’s “science fiction” oil-drilling technology and nonexistent relationships with foreign companies real and imagined. That includes Chimera’s fictitious business relationship with Pemex, the state-owned Mexican oil company, a recent Courthouse News article explained.
The judge’s ruling stated that the man is liable for securities violations. We don’t know if any Lexington residents were victims of this scam headquartered in Houston, but we do know that brokers, financial advisors and others too often misrepresent investments with untrue statements, “guarantees” of high profits and omissions of fact.
A conversation with a Lexington attorney experienced in securities fraud arbitration and litigation can protect you, your family and your portfolio.