Western slope company ordered to cease and desist sale of unregistered securities related to fracking
DENVER (April 23, 2015) – The Colorado Division of Securities, part of the Department of Regulatory Agencies (DORA), announced today that the Commissioner has signed a Cease and Desist Order against Weldon Walker and his company, Premier Water Solutions, for allegedly violating the securities registration and anti-fraud provisions of the Colorado Securities Act.
The Division alleged that Walker, who is President and CEO of Premier Water Solutions, approached investors in the Grand Junction area in 2009, claiming that he had invented a new technology to dispose of water produced during natural gas extraction in a safe and environmentally sound manner.
He purportedly told investors that their money would go toward the purchase of a New Mexico property where the technology would be manufactured and housed. It was alleged that investors received regular reports and documents from Walker through 2012, detailing the ongoing venture. However, in 2013, one investor received a tip from a friend that the property Walker had supposedly purchased seemed to be abandoned.
The investor drove down to New Mexico and discovered that although Walker had put some money toward the property initially, he soon began to miss payments, and the property was repossessed. It was further alleged that once confronted, Walker told the investor that the money had instead gone toward his “living expenses.”
Walker, who agreed to the Order, and any associate of Premier Water Solutions, are now required to cease all sales of unregistered securities in the state of Colorado, and are further barred from engaging in any other conduct that violates the Colorado Securities Act.
Securities Commissioner Gerald Rome emphasized the importance of contacting the Division prior to investing in opportunistic offerings that follow headlines in the news, stating, “It is often very difficult for the Division to recoup losses for investors once they occur, and many times perpetrators of unregistered or fraudulent offerings disappear into the woodwork. An investment opportunity that takes advantage of the high profile nature of an issue such as fracking should be treated with extreme caution. If the promoter and investment are not licensed and registered with us, they may be operating illegally.”
Division of Securities