Oil Scam Boss Lied About Wells, Pocketed Millions!

SEC v. Michael Bowen — U.S. Securities and Exchange Commission Litigation Release No. 26575, dated June 25, 2026.

The SEC charged Michael Bowen for his role as sales manager at Cannon Operating Company LLC. Bowen allegedly helped draft offering materials that misrepresented past well performance, failed to disclose sales commissions, and misstated how investor funds would be used. He also directed and concealed commission payments and acted as an unregistered broker. Bowen consented to a final judgment permanently enjoining him from securities law violations and ordering him to pay disgorgement, prejudgment interest, and a civil penalty.

In Plain English

Imagine someone selling shares in a project, like selling tickets to a play. This person, Michael Bowen, was in charge of sales for a company selling oil and gas investments. The company's sales materials, which he helped create, didn't tell the whole truth. They made old projects sound better than they were and didn't mention that the salesperson was getting a cut of the ticket sales, or they lied about how the money from ticket sales would be used. He also hid these hidden sales cuts and sold tickets without being properly registered to do so. Now, a judge has ordered him to pay back money and a fine, and he's banned from selling most types of investments in the future.

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. Develop Oil and Gas Investments Cannon Operating Company LLC, along with William Glen Baker, planned to raise money by selling interests in oil and gas wells located in Oklahoma.
2. Draft Misleading Offering Materials Michael Bowen, as Cannon's chief operating officer and sales manager, helped create offering documents. These documents falsely represented the success of Cannon's previous wells in the same area.
3. Conceal Sales Commissions The offering materials failed to disclose that sales commissions would be paid to those selling the investments, misleading investors about how their money would be used.
4. Misstate Fund Usage Beyond hiding commissions, the materials also inaccurately described how the funds raised from investors would be applied to the oil and gas operations.
5. Direct and Hide Commission Payments Bowen actively directed the payment of these undisclosed sales commissions and took steps to conceal these payments from investors and regulators.
6. Act as Unregistered Broker Bowen engaged in selling these securities without being registered with the SEC as a broker, a violation of securities laws.
7. Raise Funds from Investors Between January 2018 and September 2020, Cannon and its associates fraudulently raised approximately $2,182,687 from at least 140 investors through these unregistered offerings.

The Enforcement Action

On June 8, 2026, the U.S. District Court for the Northern District of Texas entered a final judgment by consent against Michael Bowen. The judgment permanently enjoins him from violating securities laws, including Sections 5 and 17(a)(2) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934. Bowen is also prohibited from participating in the issuance, purchase, offer, or sale of any security, except for personal purchases or sales on national exchanges. He was ordered to pay $106,000 in disgorgement, $48,827.18 in prejudgment interest, and a $150,000 civil penalty.

Named in this action: Michael Bowen.

Original SEC litigation release ↗ · Browse all cases