Robert Allen Zickefoose, 48, of Colorado Springs was indicted by a statewide grand jury on seven counts of securities fraud and theft, Colorado Attorney General John Suthers announced Monday. Zickefoose owns Zickefoose Reserves LLC, based in Colorado Springs.

The indictment alleges that he offered unregistered oil and gas investments that were discovered by the Colorado Division of Securities.

“Investors lost more than $650,000 in the course of this fraud,” said Suthers. “Thanks to the watchful eye of the Colorado Division of Securities, we have exposed, arrested and will now prosecute the actions of Robert Allen Zickefoose.”

The indictment outlined an ongoing plan in which Zickefoose and Zickefoose Reserves LLC would contact investors. This would sometimes involve “cold-calling” investors. Zickefoose would then provide offering documents for investments in “working interests” in two oil and gas wells known as the Ruby #1 and Ruby #2. Both wells were located in the Wattenberg field in Adams County. These “working interests” would then entitle the investor to profits from the wells’ production. Zickefoose never owned or obtained the interests he purported to convey, said Suthers’ office.

Zickefoose then allegedly used the bulk of the investor money for his personal expenses, cash withdrawals, payments to employees and to repay investors, the allegation read. Neither Zickefoose nor his employees were licensed to sell securities within Colorado, Suthers said.

The filing of criminal charges or an indictment is a formal accusation that an individual committed a crime.

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This case will be prosecuted in El Paso District Court by the Colorado Attorney General’s Office in cooperation with the Colorado Division of Securities. If convicted, Zickefoose faces up to 12 years in prison for each count.