Yes, here are the facts, pulled straight from an SEC filing.
Although he has started using Terrance Tecco nowadays, instead of Terry Tecco. HMMM wonder why?
False and Misleading Press Releases
4. On May 23, 2001, the company announced that it had entered into an agreement to purchase the majority interest in a Guatemalan oil field development project. The press release stated that the project, when fully developed, would have the status of a "giant oil field" with over one billion barrels of oil. The press release omitted to state that the acquisition was contingent on financing, which the company had no reasonable expectation of obtaining.
5. On June 14, 2001, the company issued a press release announcing the purchase of 16 oil wells in west Texas. The release stated that these wells already had $7,500 cash flow per month with four wells partially in production. Strata claimed that it would immediately begin a re-working program on the field and that within 30 days it expected a net cash flow of $50,000 per month. On July 31, 2001, the company announced that production from the wells would be about 50 barrels per day and that it expected operations to begin in September 2001. Strata omitted to state that it had insufficient funds to operate the four partially producing wells following the purchase. Strata also omitted to state that it did not have the funds available to re-work any of the wells, that this re-working was contingent upon receiving outside financing, and that it had no reasonable basis to expect the necessary funding. The cash-flow and production projections were, therefore, unrealistic and misleading.
6. On July 30, 2001, Strata announced in a press release that funding for the purchase of an oil project in Texas had been placed in escrow and that the acquisition would add $162 million of proven reserves to Strata's assets. When the financing for this purchase fell through, however, Strata failed to correct or retract this press release and made no attempt to revise or delete the misleading information on the company's website.
7. Finally, on March 25, 2002, Strata announced in a press release a "letter of intent" to acquire a bio-waste processing plant in Pennsylvania with expected annual revenue of $5 million. The press release also announced the company's plan to develop a field adjacent to the plant that purportedly contained $20 million in natural gas reserves. Strata omitted to state that the acquisition of the plant and the development of the natural gas field were contingent upon financing and that the company had been unsuccessful in its attempts to obtain any financing. The annual revenue projection, therefore, was unrealistic and misleading.
8. Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit, in connection with the purchase or sale of any security, making any untrue statement of a material fact or omitting to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
9. Respondents knew, or were reckless in not knowing, that the press releases described above were false and misleading at the time they were made.
10. Respondents committed or caused the violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder by issuing the press releases described above.
IV.
In view of the foregoing, the Commission deems it appropriate to impose a cease-and-desist order as specified in Respondents' Offer.
ACCORDINGLY, IT IS ORDERED that:
Pursuant to Section 21C of the Exchange Act, Respondents shall cease and desist from committing or causing any violations and any future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
By the Commission.
Jonathan G. Katz
Secretary
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