ERHC Energy Inc (ERHE)

[midtieroil]

For me the most obvious open and shut case for lack of disclosure is on the IRS audit and the Tax receivable which stayed on the books for years.

I have copies of 2 Tax Court cases that were decided against ERHC. Even after those cases were decided against ERHC no disclosure was made and the Tax receivable remained on the books.

About a year after the last Tax Court case was decided ERHC finally made up a story about how the audit had at last been completed. Only then did they reluctantly disclose it. Finally disclosing it may or may not have been due to my ongoing questions about it.

The fact that this blunder required a restatement of prior financial statements is irrefutable evidence that it should have been disclosed much sooner.

It is pretty hard to make an argument that this was an oversight or was unintentional. You don't forget about a Tax Court decision that turned a 2 million receivable into a 2.7 million liability. ERHC knew long before they told us. They obviously did not want us to know.

I would love to see Ntephe and Odobulu defend this lack of disclosure in a court of law. If anyone really wants to go after them, I would start with this. There are many other highly questionable areas as well.