SEC Bars Bellatorum CEO Facing 20 Years in Federal Prison for $30 Million Fraud
The Securities and Exchange Commission has barred Christopher R. Bentley, the majority owner, president, and chief executive officer of Bellatorum Resources LLC, which acted as an unregistered investment adviser to three Texas oil and gas/mineral rights investment funds.
The Securities and Exchange Commission has barred Christopher R. Bentley, the majority owner, president, and chief executive officer of Bellatorum Resources LLC, which acted as an unregistered investment adviser to three Texas oil and gas/mineral rights investment funds. The funds include Bellatorum Phalanx Investments LP, Bellatorum Land & Minerals LP, and Sentinel Energy Investments LP.
The SEC charged Bentley and Bellatorum in mid-August for engaging in alleged “fraudulent acts” that resulted in an almost complete loss of more than $30 million that was invested in the three private placement funds. He is also facing up to 20 years in federal prison in a criminal case and made his first appearance in federal court on August 23rd.
In May, prior to being charged, Bentley penned a book titled, Burning Bellatorum: The Story of a Forty Million Dollar Fraud and its Priceless Lessons for Investors and Entrepreneurs, detailing the purported multi-million fraud he committed while running his company. Bentley claims that he “self-reported his actions to the Federal Bureau of Investigation, Department of Justice, and the Securities and Exchange Commission.”
Explaining why he wrote the book, Bentley said, “I am deeply remorseful for what I have done and my objective in writing the book was threefold. First, I wanted to send a harsh warning to anyone contemplating doing what I did and tell them that it is just not worth it. I know that it is very easy to go down the wrong path with good intentions, and I want to prevent people from making the same mistakes that I made. Secondly, I want to protect investors from falling victim to the activities that I implemented. Finally, I wanted to try and find a way to pay back investors. They have lost so much, and I want to make things right.”
According to the SEC’s original complaint, Bentley raised $31.5 million from investors to purchase and sell mineral rights through the funds, but he reportedly used his control over Bellatorum to “secretly siphon” money from the funds while concealing their poor results.
The complaint alleges that between approximately February 2019 and April 2021, Bentley perpetrated his scheme by repeatedly manipulating the funds’ transactions, including purchasing inflated mineral rights from an affiliated entity that he secretly controlled, and purchasing mineral rights from third parties at inflated prices and then misappropriating the extra proceeds for himself and Bellatorum.
He was also accused of manipulating sales transactions to generate fake profits and trigger distributions to Bellatorum and altering documents to deceive two of the funds’ auditors.
The SEC claims that Bentley kept his alleged scheme afloat by secretly pledging most of the funds’ mineral rights as collateral for an improper $6.6 million loan. When he allegedly failed to repay the loan, the lender took most of the funds’ investments, which triggered massive losses for the funds and their investors.
To resolve the SEC’s charges, Bentley and Bellatorum previously agreed to the entry of a judgment that permanently enjoins them from future violations, bars Bentley from serving as an officer or director of a public company, and orders them to pay disgorgement, prejudgment interest, and civil penalties in amounts that will be determined by the court.
If convicted in the criminal case, Bentley faces up to 20 years in federal prison and a possible $250,000 maximum fine.
