Payson Petroleum, based in Bartonville Texas, and its Private Offerings Under Investigation After Payson Companies Declare Bankruptcy
Posted: November 3rd, 2017
Our attorneys are investigating Bartonville, Texas-based Payson Petroleum, Inc. and Payson Operating, LLC after the two companies declared bankruptcies, leaving unsecured investors holding over $20 million in losses.
Payson Petroleum and Payson Operating Files for Bankruptcy
Payson Petroleum and Payson Operating filed for chapter 7 bankruptcy in June 2016. The bankruptcy was later converted to a chapter 11 bankruptcy. According to the bankruptcy trustee, neither Payson Petroleum nor Payson Operating will have the funds to pay its unsecured creditors after administrative expenses are paid.
According to an SEC complaint filed in November 2016, the amount of unsecured debt, which was primarily raised through Payson Petroleum private placements, is at least $23 million.
Payson Petroleum and Payson Operating Background Information
Payson Petroleum was incorporated by Matthew C. Griffin in 2008. Griffin then proceeded to create Payson Operating in 2010 with Payson Petroleum as the sole member of the limited liability company. Griffin created Payson Operating to serve as oil and gas operator to Payson Petroleum’s wells. To fund the building of these wells and the operations, Payson Petroleum and Griffin began to solicit investments from private investors.
Payson Petroleum, according to its website, operating in the North Perrin Oil Field, located in Grayson County Texas. The company states on its website that it continues to drill and complete wells in the area, and alleges that the North Texas company is leading the way in providing oil investment opportunities to independent investors. According to Griffin’s LinkedIn, he is no longer affiliated with Payson Petroleum and its entities.
Matthew Griffin’s brother, William D. Griffin, was also influential in the Payson entities’ operations, as he served as Chief Administrative Officer, banking relations officer and member of Payson Petroleum’s board.
Payson Petroleum Entities and heir Private Placements
Payson Petroleum raised millions of dollars through various private placements, including filing Form Ds with the SEC for the following offerings:
- Payson Petroleum, Inc.;
- Payson Petroleum Jenny #1, L.P.;
- Payson Petroleum J.C. #1, LP;
- Payson Petroleum Grayson 2 Well, LP;
- Payson Petroleum Crowe 1, LP;
- Payson North Texas Multi-Well I, LP;
- Payson Petroleum Brown No. 1 L.P.;
- Payson Petroleum 3 Well, LP;
- Payson Petroleum 3 Well 2014, LP;
- Payson Developmental Drilling Fund 2014 II, LP;
- Payson Drilling Fund 2015 I, LP; and
- Payson Drilling Fund 2015 II, LP.
The following brokerage firms served as underwriters and/or received compensation for at least one of the aforementioned deals:
- AYRE Investments Inc.;
- Balanced Financial Securities, LLC;
- Wall and Company Securities;
- PTX Securities, LLC;
- EDI Financial Inc.;
- Financial West Group;
- Moloney Securities Co., Inc.;
- A. Repple & Company;
- H. Hill Securities LLLP;
- Security Research Associates Inc.;
- MidAmerica Financial Services;
- Whitehall-Parker Securities, Inc.; and
- CFD Investments Inc.
According to the SEC-filed Form Ds, Terry D. Harvey (CRD# 2364966) was listed as a broker who sold Payson Petroleum private placements for a number of the company’s offerings. His CRD report has a pending FINRA arbitration claim concerning Payson Petroleum filed in March 2017.
The Payson Petroleum 3 Well private placements and the Griffin brothers are currently the subject of an SEC action for various securities violations, including misrepresentations.
Contact Our Firm if You’ve Invested with Payson Petroleum, Payson Operating, or any of Their Private Placements
If you have invested in any of Payson Petroleum/Payson Operating’s private placements, including the 3 Well Program, contact our securities attorneys for a free consultation. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct, including losses incurred on risky private placements.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.
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