The
Securities and Exchange Commission has frozen the assets of a South Florida man who has been charged with fraudulently offering investments in oil drilling projects.

The SEC’s complaint, filed in federal court in West Palm Beach, FL, alleges that Joseph Hilton made “numerous misrepresentations to investors,” selling limited partnership units in two oil drilling projects earlier this year through his firm, Pacific Northwestern Energy.

Hilton told potential investors that Pacific acquired its wells from Exxon Mobil, while overstating the firm’s experience in industry and the historical accomplishments of its drillers. Overall, Hilton - whose securities offerings were not registered with the SEC - raised some $789,000 from investors. 

The SEC’s complaint also includes allegations against New Horizon Publishing - another company controlled by Hilton. Through Pacific and New Horizon, Hilton sold a further $2.5 million worth of investments in oil drilling projects, sponsored by United States Energy Corp.

Hilton allegedly changed his name from Joseph Yurkin late last year following a final judgment for fraud in a previous SEC enforcement action against him - for securities offerings he made through yet another firm he worked for, Homeland Communications Corp.

“By changing his name, Hilton thought he could evade further SEC scrutiny and keep the investing public from finding the truth in his background,” said Eric Bustillo, director of the SEC’s Miami office. “The SEC is committed to pursuing repeat offenders and ensuring the open and transparent sale of securities to investors.”

Yesterday the regulator individually charged a pair of hedge fund managers and their firms for deceiving investors with regards to how they were handling money invested in their respective hedge funds.