On September 24, 2021, the Commission instituted and simultaneously settled administrative and cease-and-desist Proceedings (the “Order”) against Resolute Capital Partners LTD, LLC (“RCP”), Homebound Resources, LLC (“Homebound”), Thomas J. Powell (“Powell”) and Stefan T. Toth (“Toth”) (collectively, the “Respondents”). In the Order, the Commission found that material misrepresentation and omissions were made in connection with unregistered oil and gas securities offerings by Powell and Toth, and two entities they respectively control, RCP and Homebound. Between 2016 and 2019, Respondents and salespeople acting on their behalf sold more than $250 million of debt and equity securities in unregistered offerings, based on working interests in oil and gas wells, to retail investors. Respondents provided insufficiently supported projections of future oil production, made statements about potential tax benefits that were unavailable to certain investors, overstated cash reserves, and made incomplete disclosures regarding potential uses of investor funds, including the amount of funds that would be used for payments to prior debt and equity investors. In total, the Commission ordered the Respondents to pay $600,000.00 in civil money penalties to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties paid can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 33-10987. 

The Fair Fund includes the $600,000.00 paid by the Respondents. The Fair Fund and has been deposited in an interest-bearing account at the U.S. Department of the Treasury’s Bureau of the Fiscal Service, and any interest accrued will be added to the Fair Fund. 

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov