Corporate & Securities Law

SEC Obtains Asset Freeze Of Joseph Blimline In Provident Royalties Case

By Steven Caruso

Provident Royalties Joseph S. Blimline faces a temporary restraining order and emergency asset freeze by the Securities and Exchange Commission (SEC) for his alleged role in a $485 million fraud and Ponzi scheme involving oil and gas placements. The SEC obtained the order on Dec. 3.

Previously, on July 7, the SEC had filed a complaint against three other co-owners of Provident Royalties: Paul R. Melbye, Brendan W. Coughlin and Henry D. Harrison. In that complaint, the SEC obtained a temporary restraining order and asset freeze, as well as appointed a receiver of the defendants? assets.

The SEC alleges in its amended complaint that Provident advanced approximately $93 million of investor funds to Blimline and various entities he controlled. The funds were for the purported purchase of oil and gas interests, or loans, to which Provident often never received title or repayment.

In addition, the amended complaint alleges that in presentations to investors and representatives of broker/dealers that marketed Provident securities, Blimline failed to disclose his receipt of such funds, his involvement in the management of Provident and a prior sanction imposed against him by securities authorities in Michigan for prior conduct.

If you?ve experienced substantial investment losses in Provident Royalties, please contact us. We want to hear your story and advise you on your legal options.

Full post as published by Representing Investors on December 07, 2009 (boomark / email).