RADIO SHARK SOLD OIL SCAMS! $12 MILLION FLEECED!

SEC v. Kevin N. Richards — U.S. Securities and Exchange Commission Litigation Release No. 26531, dated April 17, 2026.

The SEC charged Kevin N. Richards with selling unregistered oil and gas securities and acting as an unregistered broker. He marketed these investments through mass media, including his radio show, raising approximately $12 million from about 25 retail investors. A final judgment ordered Richards to pay over $797,000 in disgorgement, interest, and penalties.

In Plain English

Imagine someone selling tickets to a special event that wasn't officially approved. This person used their own radio show to tell people how great the event was and sold about $12 million worth of these unapproved tickets to roughly 25 people. They got paid a lot of money for selling these tickets. Later, a court ordered this person to pay back the money they made, plus extra, to make things right.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Developing Investment Opportunities Kevin N. Richards, a former California-based insurance agent, identified opportunities in oil and gas securities. He planned to market and sell these investments to retail investors.
2. Marketing the Offerings Richards utilized mass marketing techniques to reach potential investors. This included using his own radio show to solicit interest and promote the oil and gas investments.
3. Selling Unregistered Securities He marketed and sold approximately $12 million of investments in oil and gas securities. These offerings were conducted as a series of unregistered securities offerings, meaning they did not go through the required SEC registration process.
4. Targeting Retail Investors The investments were offered to approximately 25 retail investors. These individuals were solicited through the mass marketing efforts, including the radio show.
5. Acting as an Unregistered Broker In selling these securities, Richards acted as an unregistered broker. He received more than $600,000 in transaction-based compensation for his role in selling the unregistered securities.
6. Failing to Disclose Conflicts Additionally, Richards allegedly failed to disclose financial conflicts of interest to his advisory clients. This meant clients were unaware of potential biases influencing his investment recommendations.

The Enforcement Action

SEC Obtains Final Judgment as to Investment Adviser in Alleged Unregistered Oil and Gas Offerings. On April 7, 2026, the United States District Court for the Central District of California entered a final judgment as to Kevin N. Richards. The SEC’s complaint, filed on September 11, 2025, alleged that Richards sold securities in unregistered oil and gas offerings, acted as an unregistered broker, and failed to disclose financial conflicts of interest. The complaint alleged that Richards marketed and sold approximately $12 million of investments in oil and gas securities to approximately 25 retail investors. Richards received more than $600,000 in transaction-based compensation. Previously, Richards consented to a judgment entered on December 16, 2025, that permanently enjoined him from violating securities laws, permanently enjoined him from issuing, purchasing, offering, or selling securities except for his own personal account, and enjoined him from acting as or associating with a broker, dealer, or investment adviser for five years. The final judgment entered on April 7, 2026, ordered Richards to pay disgorgement of $618,794, prejudgment interest of $128,915, and a $50,000 civil penalty, for a total monetary judgment of $797,709.

Named in this action: Kevin N. Richards.

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