An oil and gas leader known as the “frack master” has been hit with federal civil charges in Texas and accused of defrauding investors out of nearly $80 million.
The Securities and Exchange Commission filed the charges in Dallas Federal Court against Chris Faulkner, CEO of Breitling Energy Corporation.
The SEC accused him of spending at least $30 million on private jets, gentlemen’s clubs and personal escorts to “maintain a lifestyle of decadence and debauchery.” The lawsuit also alleged he and others of misleading investors of the costs and potential returns on the oil-and-gas investments sold by his companies.
No criminal charges were filed against Faulkner but the lawsuit accused him of using one company card at gentlemen’s clubs. Specifically, the suit said he spent nearly $40,000 at one Dallas club over a four-day period in July 2014.