SEC alleges "massive" fraud by Breitling CEO

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The U.S. Securities and Exchange Commission has charged Dallas-based Breitling Energy Corp. and its CEO, "Frack Master" Chris Faulkner, of fraudulently spending tens of millions of dollars of investors' money on lavish meals, expensive cars, strippers and escorts.

The SEC alleged that Faulkner masterminded an $80 million oil and gas fraud that included Breitling, three other affiliated energy companies - Crude Energy, Patriot Energy and Breitling Oil and Gas - and eight corporate executives, including Breitling Energy general counsel Jeremy Wagers. Wagers previously practiced law at Houston-based Vinson & Elkins and Skadden, Arps, Slate, Meagher & Flom in Houston.

Faulkner, a frequent guest on CNBC, Fox Business News and CNN, disseminated false and misleading offering materials, misappropriated tens of millions of dollars of investor funds and attempted to manipulate Breitling Energy's stock, the SEC charged in a 63-page complaint filed Friday in federal court in Dallas. Faulkner was dubbed "frack master" by the media because of his advocacy of the industry, according to Breitling Energy's website.

"Since at least 2011, Chris Faulkner has orchestrated a massive, multipronged, and fraudulent scheme that has defrauded hundreds of investors across the country out of approximately $80 million invested in oil-and-gas investments sold by companies he owns and controls," the SEC charged. "Faulkner has misappropriated at least $30 million in investor funds to maintain a lifestyle of decadence and debauchery."

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