Nick Snow
Washington Correspondent
WASHINGTON, DC, Sept. 18 -- A Kentucky man operated a fraudulent oil and gas investment scheme that raised more than $19 million from 375 investors, the US Securities and Exchange Commission charged on Sept. 13.
It was the federal securities regulator's second such charge in less than a week (OGJ Online, Sept. 18, 2007). A day earlier, a federal district judge in Dallas granted SEC's request for a temporary restraining order and asset freeze against two small oil and gas companies and a Los Angeles man on stock price manipulation and false statement allegations.
In its latest complaint, SEC said Gary M. Milby of Campbellsville, Ky., and his company, Mid-America Energy Inc., Portland, Tenn., offered and sold interests in at least 30 oil and gas investment programs based on false and misleading information.
SEC charged that Milby and Mid-America violated securities registration, broker registration, and antifraud provisions of the 1933 Securities Act and the 1934 Securities and Exchange Act. It is seeking a permanent injunction, disgorgement with prejudgment interest, a civil fine, and an accounting from each defendant.
An online search found five lawsuits filed by investors against Milby, Mid-America, and its oil and gas investment programs in federal district courts in Kentucky and Tennessee from mid-April to late August. It also found actions by securities and tax regulators in Arizona, California, Indiana, and Montana.
The company named in these complaints is not to be confused with Mid-American Energy Holdings Inc. of Des Moines, which includes Kern River Gas Transmission Co. and Northern Natural Gas Co. among its assets.
Contact Nick Snow at [email protected].
