Fish & Richardson and Gulf Coast Western Announce Countersuit Filed Against Colorado Division of Securities Over Oil & Gas Joint Venture Partnerships
Summary
Notably, in 2002, the Colorado Division of Securities, under current Commissioner Fred Joseph, made claims against HEI similar to those filed in its most recent action.“A federal court and Colorado state regulators have all previously accepted that having a partnership stake in an oil and gas concern is quite a bit more involved than buying a mutual fund,” says Bill Mateja, a principal in Fish & Richardson who represents Mr. Fleeger and Gulf Coast Western.“So how can the Colorado Division of Securities now somehow accuse these legitimate businesses of violating the securities laws, especially in light of the fact Gulf Coast Western is not involved in litigation with any of its joint venture partners?” According to the countersuit, the joint ventures were formed relying on the legal principles and guidelines articulated in the previous federal court ruling in Kinlaw, the prior regulatory actions in Colorado and multiple legal opinions.However, the Division lost the case after the Colorado Securities Board found that regulators failed to prove that HEI was selling securities, forcing the Division to concede to the entry of a finding against it.“A federal court and Colorado state regulators have all previously accepted that having a partnership stake in an oil and gas concern is quite a bit more involved than buying a mutual fund,” says Bill Mateja, a principal in Fish & Richardson who represents Mr. Fleeger and Gulf Coast Western.“So how can the Colorado Division of Securities now somehow accuse these legitimate businesses of violating the securities laws, especially in light of the fact Gulf Coast Western is not involved in litigation with any of its joint venture partners?”According to the countersuit, the joint ventures were formed relying on the legal principles and guidelines articulated in the previous federal court ruling in Kinlaw, the prior regulatory actions in Colorado and multiple legal opinions.