Powder River Petroleum International Inc (fka PWDR)

[kjunova]

Thanks for the update Renee. I will read it tonight.

[Renee]

Re Brian Fox of Powder River Petroleum:

http://www.sec.gov/litigation/admin/2013/34-68754.pdf

[kjunova]

Will there be a Class Action Law suit against
Fox? Did the SEC get money back for the investors
such as the Shareholders???

[kjunova]

SEC Complaint against Brian Fox

http://www.sec.gov/litigation/complaints/2011/comp21926.pdf

[bobo67]

Hey rocky5...Were can i get in on this with the SEC? I still have PRVB shares and lost a lot of money.

[Rocky05]

SEC charges Albertan for fraudulent financials
Ticker Symbol: C:*SEC U:*SEC U:PWDR


SEC charges Albertan for fraudulent financials


U.S. Securities and Exchange Commission (C:*SEC)
Wednesday April 13 2011 - Street Wire

Also U.S. Securities and Exchange Commission (U:*SEC) Street Wire
Also Powder River Petroleum Inc (U:PWDR) Street Wire

by Mike Caswell

The U.S. Securities and Exchange Commission has filed civil charges against Alberta resident Brian Fox for fraudulently inflating the revenue and assets of Powder River Petroleum Inc., a Calgary-based OTC Bulletin Board listing. According to the SEC, Mr. Fox falsely reported millions of dollars in loan proceeds as revenue and counted properties that the company did not own among its assets.

The SEC's complaint, filed on April 8, 2011, in the Northern District of Oklahoma, identifies Mr. Fox as the president of Powder River from 2003 through 2008. During that time, he provided false information to auditors and bookkeepers that led to the company filing fraudulent financial statements, the SEC claims. Powder River, which had a 54-cent high in 2005, is now in bankruptcy proceedings and trades for 0.1 of a penny. (All figures are in U.S. dollars.)

The scheme, as described by the SEC, began in 2004 when Powder River was selling minuscule percentages of its U.S. oil and gas leases to Asian investors. The transactions were essentially loans, with the company repaying the investors 9 per cent of their original investment every year. The problem, as the SEC sees it, is that Mr. Fox caused the company to recognize $33.5-million of the money it received from the investors as sales, which artificially inflated Powder River's revenue by as much as 2,417 per cent. During the four years that this accounting practice continued, Mr. Fox told the company's auditor that the money was "prepaid production payments."

The complaint also cites Mr. Fox for causing the company to report assets that it did not have. According to the SEC, he represented to shareholders, both through the company's financials and at shareholder meetings, that Powder River owned two oil and gas leases in New Mexico and Texas worth a combined $11.5-million.

In reality, the company did not own either lease, the SEC says. Powder River had negotiated a deal in 2005 for the New Mexico property, and it paid a non-refundable $500,000 deposit. Within months it defaulted on that agreement, and forfeited its rights to the lease and to its down payment, the SEC claims. Despite that, Powder River continued to report the New Mexico lease as an asset for nearly three years, until the first quarter of 2008.

The Texas agreement, as described by the SEC, was similar. In 2006 and early 2007 Powder River made a $1.5-million non-refundable deposit to acquire a lease for $6.5-million. The company then reported the lease, along with an associated $5-million note payable, on its balance sheet through to 2008, even though it never consummated the deal. Powder River ultimately forfeited the $1.5-million down payment on that lease as well, the SEC says.

The complaint also cites Mr. Fox for causing Powder River to overstate its proved reserves. In its year-end results from 2004 through to 2007, the company claimed that it owned proved reserves worth between $3.7-million and $382-million. The problem, according to the SEC, is that the claim included reserves from properties that the company did not own. The reserves also included a questionable estimate prepared by a Texas engineer who was a convicted felon and securities fraud recidivist, the SEC says.

The result of Mr. Fox's overstatements was that the company reported revenue of $13.4-million in 2007, an overstatement of $10-million, the SEC claims. Its assets, which it reported at $27.8-million in 2007, were actually $19.2-million, according to the complaint.

During the scheme, Mr. Fox paid himself a salary that the SEC describes as "large" plus a $320,000 bonus that was linked to the company's fraudulently inflated revenue.

The SEC is seeking an appropriate civil penalty, a permanent officer and director ban, and disgorgement Mr. Fox's bonus.

ASC in the matter of Fox
The SEC suit is not the first regulatory action Mr. Fox has faced. In 2000, the Alberta Securities Commission cited him and two others for improperly raising money for a private entity called Renco Energy Corp. The ASC said they raised $481,500 from investors in B.C. and Alberta without filing a prospectus or being registered. The ASC banned him from serving as an officer or director for 18 months and ordered him to pay the $6,000 (Canadian) cost of the hearing.

© 2011 Canjex Publishing Ltd.

[microcap4]

Yes I see today volume and so I just bought some.

[Sargeant-Preston]

Heads up ! Somebody's "front-loading" ! Might be a playable quickie P&D in the making here.

[mick]

ok. blackout.

[Rocky05]

Hi Mick - I believe they are delisted and worthless,
therefore can be written off against other capital gains,
so in that sense are worth something.

[mick]

chief is this really true?

[mick]

yes potential was there. would ya know recent share structures?

[mick]

not sure mark, i sawer some chat. thought i'd lookto see messages.

[Rocky05]

Looks like a Company done in by greed.

Should have been a great success.

Very sad.

[$PennyMover]

Yep.....I doubled and left. Whats it up to now?

[mick]

been awhile since chat here.

[mick]

To 'jktdet' , just trying to see if there is any life with pwdr.

anything to shoot by us?

[mick]

so ceo is ceo yet? not suppose to be in company headers if challenged by law stuff.

http://www.securities.ok.gov/_private/DB_Query/Enforce/Orders/OrderInLineDisplay.asp?LinkAddress=CJ-08-9048_FinalOrder-BrianFox_09-005.pdf&FileNo=09-005

does he still own PWDR?

[mick]

hi rocky, anything change here? i see a read on another oil one.

does sound too good either.

[Chief_Cabioch]

Delta Petroleum Inc. in Catoosa, Oklahoma pumped those wells I was the pumper during Aug 2006-Aug 2007, Delta failed to pay employee taxes, owed me back wages of $2,389.00 and didn't have workman's Comp insurance, I sued Delta in the 26th District Court in Minden, La and won yet Delta refuses to pay the judgment, I believe the owner of Delta (Malik A. Husain) is using monies from the Ponzi Scheme and living off others. I reported a serious discrepancy for Oil well Volumes to the SEC when in Aug 2007 I was illegally fired for demanding Delta com0ply with Louisiana State law under (23:967) delta agreed to an out of court settlement and then defaulted

[georges12]

The system lets yet another "Fox" get away with ripping people off. Steve Fox, from Monterrey, CA, might be a relation. He too is a crook. Look at WYPH.

[Rocky05]

Hi Larry, looks like he basically promissed
not to do it again (whether he's guilty or not)
and that the court can still keep an eye on him.

Is that your take on it too?

100% loss here.

Rocky

P.S. Maybe we can make a movie about all this
and recoup some losses.

[larrydett]

Slap on the wrist - he's free:

http://www.securities.ok.gov/_private/DB_Query/Enforce/Orders/OrderInLineDisplay.asp?LinkAddress=CJ-08-9048_FinalOrder-BrianFox_09-005.pdf&FileNo=09-005

There's just no justice!

[Aquagold28]

We need PWDR to skyrocket so we can all get rich and don't have to work so hard. Lol.

[Aquagold28]

We need PWDR to skyrocket so we can all get rich and don't have to work so hard. Lol.

[noluck_99]

Fox skates.....he won't be spending any time with Bernie.
Hope someone meets him in a dark alley sometime......

[Bigstud is here]

Look like this was a Ponzi scheme. Mr Brian Fox will be joining with B Madoff sooner or later.

[Buck Murdoch]

Anything new with Powder River & Brian Fox? is the case closed, or are they proceeding with criminal charges?

[noluck_99]

More back and forth posturing.....

01-06-2009 RESP - FOX, BRIAN 69428975 Jan 6 2009 3:27:29:800PM - $ 0.00
RESPONSE AND OBJECTION TO RECEIVER'S SECOND MOTION FOR SANCTIONS AGAINST BRIAN FOX FOR VIOLATING COURT ORDER TO COOPERATE WITH RECEIVERSHIPP AND BRIEF IN SUPPORT THEREOF // CERTIFICATE OF SERVICE

Document Available at Court Clerk's Office
01-07-2009 RESP - 69444698 Jan 7 2009 4:40:58:460PM - $ 0.00
RECEIVER'S RESPONSE & OBJETION TO MOTION TO MODIFY TEMPORARY RESTRAINING ORDER, TEMPORARY INJUNCTION, PERMANENT INJUNCTION & ORDER APPOINTING RECEIVER & BRIEF IN SUPPORT (A/J)
Document Unavailable (#1008487510)

[StormyMonday]

In 2005 I was reading Irony posts on RB threads stating Ponze scam and many of us thought he was a mad man.I must say that now after looking back on things that accrued, he was 100% correct. How did he know this? Basically I think he was just smarter then us all and read through the BS in the filings.When Fox promised production figures and didn't deliver more then $1.Mil dollars in a QT opened a can of worms. Is Fox criminally liable? I don't know because the action is currently a civil matter, I do think if he looses the civil trial that criminal charges can and will be filed. IMHO.
The guy in NYC who stole the $50 Billion dollars in that ponzi scheme did admit that he did it and he is out on $10 Million dollars bail, they seized his passport and under house arrest.

[ironyman]

About three years ago, I posted that something was not right and everyone should sell....Back when it was .50 per share.

[Buck Murdoch]

how can I guy run off with over $40 million + Shareholders money and their be no consequences? Is Fox criminally liable for any of this? The guy from NYC with the $50 billion dollar ponzi scheme went to jail for 20 years I think.......

[ironyman]

LOL...Everyone gets screwed.

[Buck Murdoch]

So whats the deal for Fox and Powder River? Will investors see any funds back? Will stock holders see anything? Is he going to jail, or will he be able to get through this unscathed? Seems pretty serious to me..................

[noluck_99]

Bankruptcy....it's official...

12-16-2008 CNOTE - 69300453 Dec 18 2008 1:57:48:890PM - $ 0.00

CASE NOTE - PER PHONE CONVERSATION WITH ROD EDWARDS AND DAVID WIDDOES THE STATUS CONFERENCE SET FOR 12-17-08 IS STRICKEN. RECEIVER FILES BANKRUPTCY PETITION IN WESTERN DISTRICT OF OKLAHOMA. BANKRUPTCY COURT SET HEARING FOR APPOINTMENT OF TRUSTEE ON 12-18-08 AT 1:30 P.M. STATUS CONFERENCE STRICKEN - ACTION STAYED.

[noluck_99]

There is more.......

http://www.oscn.net/applications/ocisweb/GetCaseInformation.asp?submitted=true&viewtype=caseGeneral&casemasterID=2115405&db=Tulsa

[noluck_99]

Here's the latest...
12-10-2008 CTFREE - 69210806 Dec 10 2008 10:06:57:167AM - $ 0.00
GASSETT, J. MICHAEL: CECIL DRUMMOND AND DAVID WIDDOES APPEAR FOR THE PLAINTIFF; ROD EDWARDS AND LESLIE SHELTON APPEAR FOR THE DEFENDANT. PARTIES AGREE TO PERMANENT INJUNCTION AS TO DEFENDANTS POWDER RIVER AND FOX AS PER AGREED ORDER TO BE SUBMITTED BY PLAINTIFF'S COUNSEL. HEARING ON PLAINTIFF'S REQUEST FOR PERMANENT INJUNCTION IS STRICKEN AS MOOT. DEFENDANT'S COUNSEL ANNOUNCE ANTICIPATION OF BANKRUPTCY OF POWDER RIVER. PARTIES AGREE TO STRIKE HEARING SET 12-17-08. STATUS CONFERENCE SET 12-17-08 AT 9:30 A.M.

[noluck_99]

never.....from what I can tell...

[ironyman]

When exactly do they turn off this thread?

[noluck_99]

from the link YOU gave me !

Here is a link that is free to the court docket. According to the most recent receivers' report the Company is insolvent. you can get it by going to the investors page on the Company website.

http://www.oscn.net/applications/ocisweb/GetCaseInformation.asp?submitted=true&viewtype=caseGeneral&casemasterID=2115405&db=Tulsa

[jktdet]

Where did you see this document?

jktdet

[noluck_99]

Here's what is coming up....
Wednesday, December 10, 2008 at 9:00 AM
PRETRIAL CONFERENCE ON INJUNCTION ISSUES(PTC)
Wednesday, December 17, 2008 at 9:30 AM
TRIAL ON PLAINTIFF'S REQUEST FOR PERMANENT INJUNCTION AS TO BOTH DEFENDANTS(TRI)

Looks like Fox already has at least $72k in judgements against him from the last round in October......I didn't look that closely at the other line items.....may be even more....

[noluck_99]

Thanks....dang Okies....can't figure out how to PDF a doc and attach it in the website?

[jktdet]

Here is a link that is free to the court docket. According to the most recent receivers' report the Company is insolvent. you can get it by going to the investors page on the Company website.

http://www.oscn.net/applications/ocisweb/GetCaseInformation.asp?submitted=true&viewtype=caseGeneral&casemasterID=2115405&db=Tulsa

[noluck_99]

Nice links to the filings for the company...looks like August was the last shot fired back at the company receiver. Anyone have access to the OK court system? I tried...but they want you to pay a monthly access fee......already lost enough on this as it is....

[jktdet]

If you go to the PWDR website there is a link to send an email to Bruce Day's office. Not sure you will get any answers but it always worth a try.
jktdet

[noluck_99]

Anyone talk to Bruce Day?
Wondering where everything stood.
Yeah...I know....call him...do your own DD....
I'm lazy....

[ironyman]

LMAO....Loved that part about the vendors being hostile.

[Phoenix-Rising]

http://www.powderrivergascorp.com/legal/receiversreport082808.pdf

[MaxM]

The allegations in the lawsuit include, among other things, claims that Company's management has been grossly negligent and/or has acted in a fraudulent manner in conducting the Company's business. Specifically, the Company's President and Chief Executive Officer, Brian Fox, is alleged to have acted in a grossly negligent or fraudulent manner in his dealings with working interest investors (the "investors") in a number of respects, including but not limited to: (a) failing to drill or perform promised re-completion work on leases, (b) hiring an operator with a criminal and regulatory history of investor fraud, (c) failing to take steps to preserve company assets, (d) taking actions which caused the unreasonable loss of company assets, (e) withholding funds due to the Company from affiliated entities he controlled, (f) transferring company assets without an exchange of reasonably equivalent value, (g) filing misleading reports with regulators, and (h) paying himself an exorbitant salary and bonuses that were not justified under the circumstances.


The Receiver has been engaged in an ongoing investigation of these allegations. Based upon the review of an accounting schedule prepared by the Company's Chief Financial Officer, the Receiver has preliminarily determined that the Company engaged in a fraudulent "Ponzi" scheme with regard to its working interest investors during 2007. In this regard, the Company's President, Brian Fox, committed the Company to pay a minimum 9% return to numerous working interest investors. During 2007, a total of $4,413,406 in interest payments were made to those working interest investors, of which $3,263,004 came from funds received from subsequent working interest investors, not profits generated by the Company from oil and gas production. The scheme began to reveal itself when there were insufficient oil and gas production and funds from later investors to pay the promised returns to the earlier investors. Additionally, the Company has failed to pay various expenses for the past 3 to 6 months, which has resulted in the Company being in default on various obligations and some of the producing oil and gas properties of the Company being shut down. One of the most recent notices of default involves a purported Company obligation in excess of $1 million in connection with a lease of certain oil and gas equipment.


Since being appointed, the Receiver has attempted to assert control over the various oil and gas producing properties of the Company. The Receiver has retained the services of an independent accountant who, with the assistance of the Company's CFO, is attempting to indentify the Company's oil and gas properties as well as its current and past due liabilities. Mr. Fox's lack of cooperation with the Receiver has caused additional disruptions in the Company's operations.


The Receiver has also retained an independent oil and gas engineering consulting firm to evaluate the known oil and gas properties of the Company and its working interest investors. The report, which is expected to be issued before the end of August, will provide the estimated oil and gas reserves for the known oil and gas properties of the Company, as well as a geological (prospective) evaluation of those properties. In this regard, one of the principal properties of the Company, the Weesatche lease in Goliad County, Texas, is the subject of pending litigation with the operator of the property.

The operator is a company controlled by John Ehrman. Mr. Ehrman has been a subject of two prior SEC enforcement proceedings and has previously pled guilty to a federal criminal fraud charge. Mr. Ehrman is currently the subject of additional criminal fraud charges. Mr. Fox has been the subject of regulatory proceedings in an unrelated matter filed by the Calgary Securities Commission.

None of the foregoing regulatory and criminal proceedings were disclosed by the Company in its prior SEC filings or its working interest investors.


The Company will be in a better position to evaluate its properties, its prospects, and the value of investors' potential future revenues when the engineering report is received and an accounting is completed. The Receiver believes, based upon his initial investigation, that the Company's financial statements will be materially restated.