By Denver Business Journal

A Texas company, its president and a sales agent agreed to stop selling unregistered security investments in Wyoming oil and gas wells, Colorado Securities Commissioner Fred Joseph said Thursday.

Named in the final cease-and-desist order were Dallas-based Langley Energy Inc. of Dallas, its president, Mike W. Langley of Dallas, and one of its salesmen, Michael R. Murphy of McKinney, Texas. They allegedly violated the securities registration, licensing and anti-fraud provisions of the Colorado Securities Act, according to the Division of Securities.

The division alleged Murphy called a Colorado investor to solicit an investment in various oil and gas interests offered by Langley Energy, including oil and gas wells located in Campbell County, Wyo. Projections in the offering documents included annual return on investment estimates ranging from a low of 25.5 percent to a high of 61.2 percent, the division said.

The division said the company and two individuals didnâ¿¿t register the security and, by offering the investment chance to the public via calling prospective investors, violated the stateâ¿¿s securities act.

Also, the division alleged that Langley Energy, Langley, and Murphy tried to sell the stock in Colorado without proper licenses and misrepresented to investors their role in managing the joint ventures. The division also alleged that the respondents violated the anti-fraud provisions of the act for not telling potential investors that the securities had to be registered and that none of the individuals were licensed in Colorado to sell securities.

⿿We continue to see many suspect oil and gas deals come through our office and Colorado investors must show caution,⿝ Joseph said in a statement. ⿿Oil and gas investments tend to be highly risky and unsuitable for traditional, smaller investors.⿝

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