DALLAS -- Two of Jerry Jones' Blue Star companies are now part of a Securities and Exchange Commission investigation and lawsuit.
The federal complaint filed in the United States District Court, Northern District of Texas, Dallas Division on Wednesday afternoon claims that Blue Star Exploration and Blue Star Oil and Gas aided in the improper solicitation of funds and recklessly ignored the misuse of funds by James Gurgainers.
According to court documents, Gurgainers, of Star Exploration Inc., entered into an agreement with Jones’ companies for an oil and gas drilling project in 2006.
According to the complaint, Lonnie Williams, the exploration manager for Blue Star, helped Gurgainers get into the oil business. It alleges that Blue Star and Williams had assisted Gurgainers in the commission of fraud because they had knowledge of Gurgainers’ wrongful actions, including spending investor funds for other purposes.
Blue Star Oil and Gas denied the allegations.
According to a statement from lawyers representing the company, "Blue Star Oil & Gas, Ltd. entered into a contract with Star Exploration to drill a well. Blue Star drilled the well and fully performed. The Receiver's claims have absolutely no merit. We plan to vigorously defend this lawsuit and look forward to our day in court.”
Mitch Little, lawyer for the plaintiff in the case, SEC appointed receiver, Kelly Crawford, told us investors got involved because of the name Blue Star and Jerry Jones.
“Blue Star Oil and Gas received well over a million dollars in investor funds that were invested in Star Exploration in a drilling project in South Texas,” Little said. “The investors that operated on a Blue Star lease was [sic] a total loss.”
In 2008, the SEC filed a complaint against Gurgainers. The commission alleged that Gurgainers solicited investors for completion of dry well holes between December of 2005 and May 2008. The commission claims Gurgainers raised more than $12 million from more than 160 investors all over the country.
Jerry Jones was not included in the recent lawsuit, but Little told us any claims made against any personnel of Blue Star Oil and Gas will be investigated.
“Jerry Jones is not individually named in the lawsuit. We have no facts at this time,” said Little.
WFAA.com contacted Gurgainers, but he did not give us a comment.
