Gilmer, Texas, July 1, 2016 – The Texas Court of Appeals, Amarillo, has affirmed a verdict that was entered by the Lubbock County, Texas District Court, 99th Judicial District against Charles Matlock, a member of the Early, Texas City Council. Pursuant to that verdict, the district court found that Matlock “engaged in fraud,” and violated the Texas Securities Act through his sales of securities to Gerald and Martha Hill, Lubbock, Texas. Through its decision, the Texas Court of Appeals affirmed the judgment that was entered against Matlock, which encompassed the sum the Hills lost (roughly $88,000), and awarded $125,000 in attorney fees.
In reaching its decision, the Texas Court of Appeals found that Matlock informed the Hills that the investment was secure because payment was guaranteed by PCI, an insurance company. However, Matlock failed to state that PCI had been barred by the Texas Department of Insurance from conducting business in Texas. The Texas Court of Appeals also found the $125,000 award of attorney fees to be reasonable.
Chris Bebel and Jarom Tefteller, Tefteller Law, PLLC, represented the Hills. Chris Bebel is a former SEC attorney. In addition, Mr. Bebel previously served as an Assistant U.S. Attorney, where he focused on securities fraud cases.