SEC: Texas CEO used funds on strip clubs, private jets
HOUSTON (AP) - A Texas energy company CEO dubbed the "frack master" is being accused by regulators of defrauding investors of about $80 million, including spending at least $30 million on private jets, gentlemen's clubs and personal escorts to "maintain a lifestyle of decadence and debauchery."
In a lawsuit filed Friday in federal court in Dallas, the Securities and Exchange Commission accuses Chris Faulkner, CEO of Breitling Energy Corp., and others of misleading investors about the costs and potential returns on oil-and-gas investments sold by his companies.
The SEC alleges Faulkner, who hasn't been criminally charged, used one company credit card predominantly at gentlemen's clubs, including spending nearly $40,000 at a Dallas club over four days in July 2014.
Larry Friedman, Faulkner's attorney, says the SEC's allegations "are not true."