The Securities and Exchange Commission yesterday charged Samuel L. Deck of Vienna, Va., and two other defendants with fraud in the sale of unregistered oil and gas shelters. It asked a federal court judge in New York for an injunction to stop the trio from committing further alleged violations of securities laws.
According to the complaint, Howard J. Hansen of Mexico, N.Y., Bill D. Vaught of Canton, Ohio, and Deck sold 375 investors limited partnerships in Vaught Oil Co., a drilling company. Between June 1979 and November 1981, $3 million was invested in 26 VOC drilling programs.
The programs called for each investor to put up an initial $3,500 for the drilling. After the drilling was completed and if VOC determined that the well merited completion, each investor was asked to pay another $3,500. (Deck also subdivided some of the interests into smaller investments.)
The complaint said that letters from Vaught encouraged customers to continue investing in new VOC programs. "These letters and conversations contained untrue statements of material fact concerning the amount of oil or gas produced per day by each well, and the number of years a well could be expected to continue producing oil and gas," the complaint stated.
The complaint did not disclose how successful the drilling ventures were or how much of a return investors received.
Deck received more than $62,000 in commissions from Hansen, although he told customers that his only remuneration was one dollar for each check he sent out to investors with their share of revenues plus $25 for preparing a tax schedule for each partnership interest, the SEC said.
Deck is described in the complaint as a government statistician who provides tax preparation services. Deck signed a consent order with the State of Virginia in March 1982 that enjoined him from acting as an unregistered broker-dealer or securities agent.