SEC charges Houston American Energy with misleading investors

|About: Houston American Energy Corp. (HUSA)|By:, SA News Editor

Houston American Energy (NYSEMKT:HUSA) is charged by the SEC with misleading investors by exaggerating the extent of its oil reserves in Colombia and downplaying the risks.

The SEC alleges the company and CEO John Terwilliger "misled investors by wildly exaggerating the extent and nature of their oil and gas holdings."

As it played up its Colombian reserves, HUSA raised $13M in a public offering, with its stock price quadrupling to more than $20/share between Nov. 2009 and April 2010.