Bankruptcy Judge Craig Gargotta has ruled against San Antonio businessman Brian K. Alfaro, allowing a group of investors to pursue most of their fraud claims against him and his oil and gas businesses in court, the San Antonio Express-News reported today. Judge Gargotta last week denied Alfaro’s request to dismiss allegations of fraud, civil conspiracy, negligent misrepresentation, and violations of securities laws, among other claims. Claims for breach of fiduciary duty against some entities connected with Alfaro were dismissed, but not against Alfaro himself or three of his companies. The more than 40 investors, including former Major League Baseball player Freddie Patek, allege that they were defrauded in various Alfaro investment deals involving oil and gas wells in the Eagle Ford Shale and elsewhere. Read more.
For a further analysis of commercial fraud, make sure to pick up a copy of ABI’s Fraud and Forensics: Piercing Through the Deception in a Commercial Fraud Case.
