$155 Million Raised from Investors thru Alleged Fraudulent Scheme

 

Speculations ran rampant this week when numerous individuals watched documents being removed from Clear Energy Technology Association, Inc. (CETA) in downtown Fairfield, Texas on Wednesday, May 3, 2023. It was assumed by many that Roy Hill had been arrested.

Click here to see short video clip.

However, this reporter was allowed to enter the CETA building on May 5th by a member of the Securities and Exchange Commission, whereby one individual stated, “He was not arrested,” but would not comment further. The building was still swarming with tight lipped individuals wearing black shirts with the logo “On Target.”

Freestone County Times has been able to confirm that The Securities and Exchange Commission has filed suit against Mr. Hill and his associate, Eric N. Shelly, demanding a jury trial.

The suit is an emergency action to stop all activity associated with CETA, the Texas corporation controlled by Hill, as well as an investment company operating out of Pennsylvania.

Following is some of the information contained in “Securities And Exchange Commission (plaintiff) v. Roy W. Hill, Eric N. Shelly, Clean Energy Technology Association, Inc., and Freedom Impact Consulting, LLC (defendants)” suit filed in The United States District Court For the western District of Texas Waco Division:

“This is an emergency action to stop Hill, Shelly, and entities they control from soliciting investors in an oil-gas-related fraudulent scheme. Hill controls CETA, a company that claims to build machines that enhance the marketability and recovery of hydrocarbons, referred to as carbon capture units (“CCUs”), which CETA purports to lease to major oil and gas producers in exchange for compensation based on percentage of revenue from the enhanced hydrocarbon production. Shelly, a dentist, founded, and controls FIC, which operates out of

Shelly’s home and offers and sells investments in funds that Shelly has formed to raise capital for CETA (together, the “Funds”).”
Court documents further indicate that from 2019 to present defendants have raised $155 million from over 500 investors nationwide.

The funds were to be used to buy, lease, deploy the CCUs and acquire working interests in the oil and gas wells. Reportedly, FIC indicated to investors that they would be paid returns from the CETA revenues.

The document further claims that the investors were “lured” with false claims that 10% quarterly returns were being consistently generated by investor funds. that CETA has a contract with ExxonMobil Corporation (they do not). And, that the CCUs are patented (they are not), and according to the suit, the CCUs have not progressed beyond a few prototypes.

Funds, according to the suit, were used to pay quarterly returns to investors, personal expenses, payroll, and also transferred to other accounts controlled by defendants. To perpetuate the fraud, the SEC indicated that investors were provided with false financial statements showing investments that do not exist.

Former Fairfield Mayor Roy Hill, founder and board chairman of CETA, was named in a civil suit filed by the Securities and Exchange Commission last week.

The SEC seeks permanent injunctions, disgorgement plus prejudgment interest, and civil penalties against each defendant, and all other equitable and ancillary relief to which the Court determines the Commission is entitled.

Claims in the suit include: 1. Fraud in connection with the Purchase or sale of securities, and 2. Fraud in offer or Sale of Securities.

Click here to read the Civil Action No. 6:23-cv-00321 in its entirety.

Click here to view the docket in this case.

Roy Hill served the City of Fairfield from 2004 until 2018, first as a councilman and then as Mayor.

As of press time, he has not returned our phone calls.

Special to The Times, reporting by Mary McDonald.

 

Click here for a Litigation Release issued by the SEC on Monday, May 8, 2023.