Dennis Keith Sanders Pleads Guilty in Fraud

By April 19, 2021 Investment Fraud

The Texas State Securities Board (“Board”) recently issued an Agreed Order  against Dennis Keith Sanders and his company, Southwest Resources, Inc. (“Southwest”), for violations of the Texas Securities Act in conjunction with the sale of a leasehold interest in an oil well.

As detailed in the to the Agreed Order:

On or about March 31, 2014, Respondent Sanders approached M.D. and T.D. regarding conveying interests in an oil well known as the Banks #1-H and its corresponding mineral lease located in Fayette County, Texas. Respondent Sanders represented that the interests in the well and lease were owned by Respondent Southwest Resources. However, in truth and in fact, Respondents did not own the lease. Further, the lease had expired as it was not longer held by production.

Respondent Sanders agreed to sell the wellbore and associated equipment for $125,000.00. Respondent Sanders agreed to sell the rights under the mineral lease at $750.00 per net mineral acre, for a total of $755,617.50.

M.D. and T.D. agreed to the terms of the sale and on or about April 30, 2014, delivered a check for $125,000 to Respondents. On or about May 28, 2014, M.D. and T.D. delivered the remaining $755,617.50 to Respondents.

Because Section 4.A of the Securities Act defines “securities” broadly to include, inter alia, “interest[s] in or under an oil, gas or mining lease,” the Board concluded that the above-described conduct constituted a fraud in connection with the sale of securities and ordered Mr. Sanders and Southwest to cease and desist.

In addition, the Brazos County District Attorney’s Office prosecuted Dennis Keith Sanders for securities fraud, theft, and money laundering, to which Mr. Sanders pleaded guilty on February 24, 2021.

If you’ve been defrauded in the sale of property or any type of investment product, Fishman Haygood’s experienced securities attorneys may be able to help. Please contact us to discuss your potential claim.