A CEO associated with the fracking industry is accused of using investor money on his sexual appetite instead of investing in the business. He was also an ally of Republican Senator Marco Rubio.
SEC Alleges Misconduct By Breitling Energy’s Chris Faulkner
Breitling Energy Corp CEO Chris Faulkner allegedly cheated investors out of at least $80 million, according to the Securities and Exchange Commission (SEC). Faulkner is accused of using the money he solicited for his own personal expenses and those of his friends and family.
Taking advantage of the shale oil boom in the last few years, Faulkner positioned himself as a key figure in the “fracking,” industry – targeted at opportunities in states like Texas, Oklahoma and North Dakota, where his company claimed to have drilling rights.
But the SEC says it was all a scam.
Along the way, Faulkner, his friends and associates violated various securities laws, it said. Breitling and related firms sold investments in more than 20 oil and gas prospects in several states. The SEC said they exaggerated the prospects’ earnings potential and also booked fictional drilling costs.
Solicitations to investors were “replete with material misrepresentations and omissions,” the SEC said.
Faulkner’s “Whore Card”
The company, which was publicly listed, did not file quarterly or annual financial reports with the SEC after its auditor left in 2014. Filing those documents is a basic procedure for a public company.
Instead, the SEC alleges in a lawsuit that Faulkner spent millions on sexual offerings and the jet-setting lifestyle of a millionaire playboy.
Faulkner dubbed one of his corporate credit cards the “whore card,” the SEC said. During two months in 2014, he used it to charge more than $1 million on travel and entertainment including visits to strip clubs, according to the suit.
Faulkner also spent nearly a million dollars with Status Luxury Group, a New York-based private concierge service, the suit said. Status, which arranges travel, meals and events for clients, last year sued Faulkner and Breitling for around $240,000 in unpaid bills, including a women’s shoe-shopping spree.
Faulkner, The GOP, And Marco Rubio
Faulkner had a connection to the Republican Party, who has been solidly pro-fracking for years despite concerns about the environmental impact of the practice. Reuters reports that Faulkner “contributed to several big-name U.S. politicians, including Florida Senator Marco Rubio,” who also toured Breitling’s facilities in 2014.
Of the allegations are true, Rubio and the GOP helped to popularize an enterprise that stole money from investors primed to believe conservative hype on fracking, but who were instead financing the sexual adventures of yet another right-wing grifter.
Senator John Cornyn (R-TX) was also a visitor to Breitling Energy, helping to promote and push fracking.
According to Federal Elections Committee records, Faulkner donated to several Republican causes and candidates.
- Over $70,000 to the National Republican Congressional Committee (NRCC)
- He gave $10,000 to the Republican Party of Ohio
- At least $2,000 to Sen. Marco Rubio (R-FL)
- $3,000 to Reclaim America PAC, a PAC backing Rubio’s failed presidential campaign
- $10,000 to Right to Rise, the PAC backing Jeb Bush’s failed presidential campaign
- $2,300 to current House majority whip Rep. Steve Scalise (R-LA)
- $5,200 to former speaker Rep. John Boehner (R-OH)
His sole donation to a Democratic group was $5,000 to the Connecticut Democratic State Central Committee.