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SEC Settles Charges with Former CEO of Texas Oil-And-Gas Penny Stock Company

(HedgeCo.Net) The U.S. District Court for the Southern District of Ohio entered a final judgment against Timothy Crawford, the former CEO of Cardinal Energy Group, Inc., for fraudulently concealing the loss of Cardinal’s major source of revenue.

As alleged in the SEC’s March 2019 complaint, Cardinal, an oil-and-gas penny stock company based in Dallas, Texas, lost control of its interest in two oil-and-gas leases in mid-2017 that accounted for nearly all of the company’s revenue. Following the bad news, the complaint alleges that Cardinal and Crawford filed quarterly reports with the SEC that misrepresented to investors that the company still expected the leases to be part of its future business plans. While concealing the setback to the business, Cardinal and Crawford allegedly raised additional money from investors and misreported Crawford’s stock ownership.

Without admitting or denying the allegations of the complaint, Crawford has consented to the entry of a judgment permanently enjoining him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 and the beneficial ownership reporting and certification provisions of Sections 13(d)(1) and 16(a) of the Exchange Act and Rules 13a-14, 13d-1, and 16a-3 thereunder; and from aiding and abetting violations of the reporting provisions of Sections 13(a) and 14(c) of the Exchange Act and Rules 12b-20, 13a-13, and 14c-6 thereunder. Crawford has also agreed to disgorgement of $5,478, with prejudgment interest of $487, a $50,000 civil penalty, a five-year officer-and-director bar, and a permanent penny stock bar. On September 12, 2019, the Commission announced a settlement of its litigation with Cardinal. The final judgment against Crawford concludes the litigation in this matter.

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