A Dallas licensed petroleum engineer used a radio show to lure investors into a fraudulent oil and gas investment opportunity, according to a complaint filed by the U.S. Securities and Exchange Commission this week.
Mark Plummer touted the benefits of oil and gas investments on his radio show, “Smart Oil and Gas,” on KRLD, and encouraged listeners to call in for more information. When they did, they were routed to Petroleum Resources of Texas, a company that was secretly working with Plummer, the complaint said.
He encouraged people to invest with Petroleum Resources of Texas without disclosing that it was owned by his former salesman, Mike Barrera, and that he was involved, according to the complaint, which was filed on Thursday.
Barrera was also not a registered broker, but he solicited and sold securities, the complaint said.
The company raised over $7 million from more than 70 investors from 2018 to 2020 for two oil and gas well projects, the complaint said. Money was diverted to Plummer through his latest company, Richmond Engineering Inc., it said.
According to the complaint, Plummer then used the funds to pay for club memberships, student loans, personal credit card debt, and car and mortgage payments.
Barrera, his business partner, also used funds inappropriately, it said.
“Barrera misused and misappropriated investor funds, including to pay for his lavish lifestyle,” the complaint read.
Barrera also told investors that his company would manage well projects when…