According to the complaint filed August 17, 2010, the Defendants formed sham companies that they controlled, took advantage of the Plaintiff and engaged in an ongoing and continuing fraud. They made false statements and misrepresentations about claimed oil and gas well development, and willfully suppressed material facts necessary to make statements they made not false and misleading.
According to the complaint, the defendants represented: a greater than 50% annual rate of return; a return of capital in 12 to 24 months; better than 10 to 1 potential return on investment; tax benefits of 65-80% right-off in the first year; and 15% of revenue tax free.
On March 4, 2011, the plaintiff filed a motion for default judgment against the defendants. The motion was granted. According to the Judgment by Judge Percy Anderson entered on April 11, 2011, it is hereby ordered, adjudged, and decreed that Defendants are jointly and severally liable to Plaintiff as follows: (1) Defendants shall pay Plaintiff damages in the amount of $1,479,236.40. (2) Defendants shall pay Plaintiff attorneys' fees in the amount of $33,184.73. (3) Plaintiff is entitled to interest on the principal amount of the judgment to Plaintiff at a statutory rate pursuant to 28 U.S.C. Section 1961(a). The case is now terminated.