Houston American Energy Corp. (NYSE MKT: HUSA) has reached a final settlement agreement in the civil cease-and-desist proceeding previously instituted by the Securities and Exchange Commission against the company and its CEO, John F. Terwilliger.
In the settlement of the fraud charges, the company and Terwilliger did not admit or deny any wrongdoing, but agreed that each would cease and desist from committing or causing any violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange and Rule 10b-5 promulgated thereunder; the company would pay a civil monetary penalty in the amount of $400,000; Terwilliger would pay a civil monetary penalty in the amount of $150,000; and Terwilliger would be prohibited from serving or acting as an officer or director of a public company for a period of five years.
In conjunction with the settlement, Terwilliger has tendered his resignation as an officer and director of Houston American Energy Corp., and the company has appointed John P. Boylan as chairman, CEO, and president. Additionally, the board has appointed Roy Jageman as a director.
Boylan has served as a director, and as chair of the audit and compensation committees, of the company since 2006. He is a licensed certified public accountant (CPA) and provides financial and management advisory services to the oil and gas industry.
Terwilliger will remain employed by the company in a non-executive advisory capacity at least through the end of 2015 to facilitate the management transition. At that time, his future employment with the company will be redetermined.
Jageman is a private investor and consultant to the energy industry with more than 25 years of industry experience. He has served as CFO and in other senior executive positions with multiple oil and gas producers and in various management capacities with multiple investment banking and financial advisory firms.
Based in Houston, Texas, Houston American Energy Corp. is an independent energy company with interests in oil and natural gas wells and prospects. The company has a mix of producing and non-producing assets, with a focus on Colombia, Texas, and Louisiana.