Investor Fraud Involving Oil and Gas Company Investments
It sounds like the plot of a movie. This week, thanks to the work of the FBI, 15 people were convicted by an Indiana court for securities fraud related activities. The group, lead by a man named David Rose, used a phony oil and gas exploration company to bilk investors all over the country over a period of several years.
Rose and his co-conspirators created the fictional company Earth Energy Exploration, Inc in 2007. He hired employees to cold call investors in several different states, from Pennsylvania to Texas, offering them a piece of Earth Energy Exploration. Once a target expressed interest in the deal, one of Rose's "closers" would get on the phone and lock the investor in. Rose and his team then funneled the investor's money into their own pockets or related criminal enterprises.
Fraudsters Convicted in Federal Court
It is unclear exactly how much money the Earth Energy Exploration gang stole from investors. However, all 15 of the members have been sentenced to federal prison and forced to pay back investors for their involvement. They include, in alphabetical order:
- Thomas Berry provided assistance to Brian Rose and pled guilty to corrupt business influence. Berry was sentenced to 4 years, 1.5 to be served in prison and 2.5 on probation.
- David Brown was a sales closer and pled guilty to aiding the sale of unregistered securities. Brown was sentenced to 4 years in prison.
- Richard Collins was a sales closer and pled guilty to aiding the sale of unregistered securities. Collins was sentenced to 6 years in prison.
- Bruce Fox was a president of Earth Energy Exploration, Inc. and pled guilty to securities fraud and the sale of an unregistered security. Fox was sentenced to 6 years in prison and returned $5000 to victims.
- Brent Loveall acted as a sales closer and pled guilty to acting as an unregistered broker-dealer. Loveall was sentenced to 6 years in prison.
- Robert McGregor was a sales closer and pled guilty to the sale of unregistered securities. McGregor was sentenced to 4 years with 18 months of probation.
- Keith Mohney was a CPA and the Earth Energy Exploration, Inc. tax preparer. He pled guilty to aiding the sale of unregistered securities. Mohney was sentenced to 4 years with 4 years of probation.
- Colin Purcell pled guilty to aiding securities fraud. Purcell was sentenced to 3 years with 3 years of probation and returned $5000 to victims.
- Brian Rose, an owner of Earth Energy Exploration, Inc, pled guilty to securities fraud and corrupt business influence. Brian Rose was sentenced to 8 years in prison with 2 years' probation and returned $25,000 to victims.
- David Rose, who was a leader of the scheme, pled guilty to securities fraud and was sentenced to 8 years, 4 of which will be executed in prison.
- Hugh Sackett was a sales consultant and pled guilty to aiding the sale of unregistered securities. Sackett was sentenced to 4 years in prison with 2 years of probation and returned $6000 to victims.
- Jeffery Smith laundered money for Brian Rose and pled guilty to conversion. He was sentenced to 1 year and returned $1000 to victims.
- Jason Towe was a sales closer and a president of Earth Energy Exploration, Inc, he pled guilty to corrupt business influence. Towe was sentenced to 4 years with 4 years of probation and returned $15,000 to victims.
- Mandy Ward-Rose ran a small pornography company and wrote investment paperwork for Earth Energy Exploration, Inc. She pled guilty to theft and was sentenced to 3 years, while returning $22,000 to victims.
- Michael Wood was a president of an Earth Energy Exploration, Inc affiliate company and pled guilty to aiding the sale of unregistered securities. Wood was sentenced to 4 years in prison
