Texas Monthly Securities Bulletin, July 1985 Page: 3
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failing to disclose to an investor that the partnership lease, equipment and production
from the lease had been pledged as collateral for a $250,000 loan.
On July 29, 1985, Kenneth Wayne Goodwin was found guilty of six counts of theft and one
count of conspiracy to commit theft by a Tyler jury. Goodwin was sentenced to ten years
probation and a $10,000 fine. Goodwin is also under indictment for securities fraud in
connection with the sale of oil and gas interests.
ORDER SUSPENDING THE REGISTRATION OF
LEADER OIL, INC. AND W];LLIAM VERNON STEELE BY CONSENT
IN THE MATTER OF
LEADER OIL, INC.
WILLIAM VERNON STEELE; AND BOARD ORDER LS-721
EDWARD LOWELL DUX
On July 8, 1985, the Securities Commissioner issued an agreed Order suspending the dealer
registration of Leader Oil, Inc. and William Vernon Steele after finding that respondents
Leader and Steele offered and sold unregistered securities through unregistered dealers,
agents or salesmen. In addition, it was found that Leader and Steele, in connection with
the sale of oil and gas interests, intentionally failed to disclose that Edward Lowell
Dux had loaned Steele $22,000, acted as a consultant to Leader Oil, Inc. by helping
Leader acquire oil and gas leases, and helped train salespeople for Leader Oil; that Dux
was the subject of a permanent injunction in 1976, prohibiting him from selling secu-
rities in violation of the registration provisions of the Act; that Dux pled guilty in
1977 to one count of securities fraud; and that Dux was a principal of Petro-Cap, Inc.,
which filed a petition in bankruptcy for reorganization under Chapter XI of the Bankrupt-
cy Code in 1982, and for which a trustee was appointed by the Bankruptcy Court. Leader
and Steele also misrepresented that Steele had experience in oil and gas operation, and
that $20,000 of the proceeds of the Metsgar #1 offering would be applied to geological
and engineering fees. In connection with the sale of the oil and gas units, Leader and
Steele stated the initial potential of wells surrounding the proposed well site, which
statement was misleading since they failed to disclose the actual production of said
wells.
CEASE AND DESIST ORDER PROHIBITING
THE SALE OF SECURITIES BY EDWARD LOWELL DUX
BY CONSENT
IN THE MATTER OF
LEADER OIL, INC.
WILLIAM VERNON STEELE; AND BOARD ORDER CD-722
EDWARD LOWELL DUX
On July 9, 1985, the Securities Commissioner issued a Cease and Desist Order by consent
against Leader Oil, Inc. and Edward Lowell Dux. The Commissioner found that Leader and
Dux violated the registration and antifraud provisions of The Securities Act. The Order
directs Dux to Cease and Desist from assisting any individual to start up a company,
whose purpose is to engage in the sale of securities, by loaning start-up money to the3
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Texas. State Securities Board. Texas Monthly Securities Bulletin, July 1985, periodical, August 1985; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1588734/m1/3/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.