Securities: SEC Charges Lawyer with Securities Fraud on Biofuel Companies

The U.S. Securities and Exchange Commission says that it has filed an injunctive action in U.S. District Court alleging that from January 2006 to February 2007, Louis W. Zehil, a corporate attorney, took part in a fraudulent plan to obtain and sell millions of shares of securities in violation of the antifraud and registration standards set by federal securities laws. Zehil, 41, was a partner with the law firm of McGuireWoods LLP, until his legal troubles began.

SEC charges lawyer with securities fraud on biofuel companies

The complaint says that Zehil represented seven, primarily biofuel, public companies and issued their stock in PIPE transactions. PIPE stands for private investments in public equity. The seven public companies involved were Gran Tierra Energy, Inc., Foothills Resources, Inc., MMC Energy, Inc., Alternative Energy Sources, Inc., Ethanex Energy, Inc., GoFish Corp., and Kreido BioFuels, Inc. Profits of at least $17 million were gained from the scheme.