LV firm told to stop securities sales

Monday, Feb. 15, 1999 | 9:29 a.m.

Laura Royal, an investigator with the West Central Florida Regional Office of the comptroller's Department of Banking and Finance, said her office filed an action against Robert McElmurry, an agent with Edwin A. Epstein Jr. Operating Co. Inc., based in Las Vegas.

The Florida office filed an administrative complaint in August against Epstein, his company, as well as Pan American Securities and Brokerage Inc., Kellner & Co. and Paul W. Kellner, based in Tampa. McElmurry was added to the complaint last month.

The complaint says Epstein and McElmurry raised at least $300,000 from six investors from May 1996 through February 1998. According to the complaint, McElmurry and the others were selling oil and gas investments to fund drilling operations in gas fields known as Big Bob, Big Bob West and East Big Bob in Starr County, Texas, and Submarine Canyon in Cameron Parish, La.

Investments ranged from $7,300 to $58,000 for part interest in an oil, gas and mineral lease.

Royal said California's securities regulators filed a cease and refrain order on Epstein's sale of securities in that state. She also said an investigation is pending in Nevada.

A spokesman for Nevada's Division of Securities acknowledged it had helped Florida officials with their investigation and said no action had been taken in Nevada. He said state policy prohibits commenting on investigations in progress.

An attorney for Kellner did not return phone calls. Epstein and his company could not be reached for comment.