2004
Charles M. Langston of Highland Park, Texas, doing business through Southwest Reserves, Inc. and Arklatex Productions, Inc. was indicted on August 3, 2004, in the United States District Court for the Northern District of Texas, Dallas Division for securities fraud, mail fraud, money laundering, and illegal monetary transactions. Langston is charged with operating a scheme to defraud by misrepresenting that he was a successful oil and gas entrepreneur, that he had a treasure map of sure investments and a list of prospects with unpaid royalties that he would obtain and resell at a profit. He is charged with failing to disclose that the investments did not exist and that the profits paid to investors were ponzi payments from other investors. He is also charged with failing to disclose to investors the numerous lawsuits and judgments against him for misapplication of funds in prior oil and gas ventures.