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Yes, I agree with. Petro IS moving forward with the arrests and future trial :)
H
Not really old news, it shows Petro is moving forward....
I agree with you. I had some documents that showed when the next taxes and fee need to be paid. For PTRZ they are in March or April of 2011. I believe it's March.....so if they don't come up with several hundred thousand dollars...PTRZ will become toast....I think the gig is just about up. Of course, since the major stock holder is/or was Owen, I don't think the "new" group can do anything about PTRZ. Petro Kansas doesn't own it...like you said, Owen does....and we know where he's at these days. It's a shame they were so greedy.
Wonder how long before the SEC Revokes PTRZ?
Like they did WTAI
http://www.sec.gov/litigation/aljdec/2010/id397rgm.pdf
Owen wanted to do another Pump with WTAI and Teresa Brown had illegally (see court docs) pre loaded a bunch of that stock!
All these Petro Ks "shareholders" were used to pump up PTRZ and Petro Ks didn;t even have any interest in PTRZ! Turns out Owen himself was the major stock holder!
This should infuriate Petro Ks "shareholders" who's money was used to buy Owens majority position in PTRZ and then insulted by being led to believe a R/M had taken place. Read all our posts here on Ihub back in July 09 through well some are still posting!!!!
Really start reading from April when the start of the pump began: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=37244875
These are the owners of ASWD stock.
Thats the sad part of an affinity scam, using blind faith. Hopefully the veil of deception has been lifted for most.
GLTA
Yes, it looks like they are moving forward....
Pacer update 06 Jan 11 - USA v Hawkins CRIMINAL COMPLAINT Case Number: 4:10-cr-00332-ODS All Defendants
https://ecf.mowd.uscourts.gov/cgi-bin/iquery.pl
Date Filed # Docket Text
01/06/2011 53 ARREST WARRANT RETURNED EXECUTED on 10/27/10 as to Isreal Owen Hawkins, Jr. This document contains original signatures of non attorneys and is being maintained in a paper file at the court.(Rowland, Bonnie) (Entered: 01/06/2011)
12/30/2010 52 TRIAL ORDER as to Isreal Owen Hawkins, Jr, Teresa Brown, Johnny Heurung, 50 MOTION to continue trial from February 14, 2011 to November 29, 2011 filed by Johnny Heurung, and 40 MOTION to continue filed by Isreal Owen Hawkins, Jr are granted. The case is set for trial on the Joint Criminal Jury Trial Docket commencing on November 28, 2011. A final pretrial conference is set for November 8, 2011. On or before August 2, 2011, the parties shall file any relevant pretrial motions. Any suggestions in opposition shall be filed within thirty days from the date the motion is filed. See Order for additional deadlines. Signed on 12/30/2010 by Magistrate Judge Sarah W. Hays.(Gicinto, JoRita) (Entered: 12/30/2010)
12/23/2010 50 MOTION to continue trial from February 14, 2011 to November 29, 2011 by Johnny Heurung. Suggestions in opposition/response due by 1/10/2011 unless otherwise directed by the court. (Sandage, Lance) (Entered: 12/23/2010)
12/20/2010 49 ARREST WARRANT RETURNED EXECUTED on 12/16/2010 as to Johnny Heurung. This document contains original signatures of non attorneys and is being maintained in a paper file at the court.(Martin, Jan) (Entered: 12/20/2010)
12/17/2010 47 AFFIDAVIT of Financial Status of Johnny Heurung. This document contains original signatures of non attorneys and is being maintained in a paper file at the court. (Gicinto, JoRita) (Entered: 12/17/2010)
12/16/2010 51 ORDER setting conditions of release as to Johnny Heurung. Defendant released on a personal recognizance bond. This document contains original signatures of non attorneys and is being maintained in a paper file at the court.. Signed on 12/16/10 by Magistrate Judge Sarah W. Hays.(Myers, Dorothy) (Entered: 12/23/2010)
12/16/2010 46 Minute Entry for proceedings held before Magistrate Judge Sarah W. Hays: SCHEDULING CONFERENCE as to Isreal Owen Hawkins, Jr, Teresa Brown held on 12/16/10. Government counsel appears in person; Defense counsel appears in person; Defendant Hawkins, Jr. appears in person; defendant Brown appears by telephone. Motion for Continuance filed by defendant Hawkins, Jr. requesting trial to be reset to November 29, 2011. Defense counsel gives further explanation as to why continuance of trial from the January 10, 2011 trial docket is necessary. The Court must first conduct a scheduling conferencewith the co-defendants prior to resetting the trial date. No objection by either defendant. No objection by government counsel. Discovery issues discussed. As of last week, the government produced, in digital format, approximately 27,000 pages of discovery, consisting of bank records, financial documents, and recordings of telephone calls (approximately 80-90), which accounts for approximately half of the all discovery. An additional 10,000-15,000 pages are currently being prepared to send to IVIZE within the next couple of weeks. The remaining discovery to be produced will be in the range of 25,000-30,000 pages and should be produced to defendants within the next 30-45 days. Defendant request pretrial motions to be filed by August 2, 2011. Government responses due within thirty days from the date the motion is filed. To order a transcript of this hearing please contact Lori Carr, 816-512-5064. (Carr, Lori) (Entered: 12/17/2010)
12/16/2010 45 ORDER APPOINTING COUNSEL UNDER CJA as to Johnny Heurung. Lance Sandage appointed. Signed on 12/16/10 by Magistrate Judge Sarah W. Hays.(Carr, Lori) (Entered: 12/16/2010)
12/16/2010 44 Minute Entry for proceedings held before Magistrate Judge Sarah W. Hays: INITIAL APPEARANCE and ARRAIGNMENT as to Johnny Heurung (3) Count 1,13-14 held on 12/16/2010. INITIAL APPEARANCE and ARRAIGNMENT as to Johnny Heurung (3) Count 1,13-14 held on 12/16/2010. Bond Set: Personal Recognizance. Conditions of release read to the defendants. Defendant entered a plea of not guilty to each count of the indictment applicable to him/her. Defendant ordered released on a continuing bail bond. Case ordered set for trial on the joint criminal jury trial docket which commences February 14, 2011. If the parties and defendant Heurung agree to a continuance of this matter to the November, 2011 joint criminal trial docket, a scheduling conference will not be necessary; if, however, the parties do not agree, then counsel for Heurung was directed to contact the Courtroom Deputy to set a hearing. If parties do not agree, then counsel for Heurung was directed to contact the Courtroom Deputy to set a hearing. Ex parte discussion with Lance Sandage, CJA counsel, who was given a copy of the financial affidavit and directed to complete the form with the defendant and electronically file the affidavit within the next week. If counsel believes the information contains private information, then counsel should contact the Courtroom Deputy so the document may be filed under seal. Defendant released on bond. To order a transcript of this hearing please contact Lori Carr, 816-512-5064. (Carr, Lori) (Entered: 12/16/2010)
12/16/2010 ARREST of Johnny Heurung (Carr, Lori) (Entered: 12/16/2010)
12/15/2010 42 NOTICE OF ATTORNEY APPEARANCE - Melanie Susan Morgan appearing for Teresa Brown. (Morgan, Melanie) (Entered: 12/15/2010)
12/15/2010 41 NOTICE OF HEARING as to Johnny Heurung. This is the official notice for this hearing. Initial Appearance and Arraignment set for 12/16/2010 03:00 PM in Courtroom 6E, Kansas City (SWH) before Magistrate Judge Sarah W. Hays. Signed on 12/15/2010 by Magistrate Judge Sarah W. Hays.This is a TEXT ONLY ENTRY. No document is attached.(Gicinto, JoRita) (Entered: 12/15/2010)
12/15/2010 40 MOTION to continue by Isreal Owen Hawkins, Jr. Suggestions in opposition/response due by 1/3/2011 unless otherwise directed by the court. (Moss, Stephen) (Entered: 12/15/2010)
12/14/2010 48 ADDENDUM TO ORDER setting conditions of release as to Isreal Owen Hawkins, Jr. This document contains original signatures of non attorneys and is being maintained in a paper file at the court.. Signed on 12/14/2010 by Magistrate Judge Sarah W. Hays.This is a TEXT ONLY ENTRY. No document is attached.(Gicinto, JoRita) (Entered: 12/17/2010)
12/14/2010 43 Minute Entry for proceedings held before Magistrate Judge Sarah W. Hays: BOND HEARING/CONDITIONS OF RELEASE as to Isreal Owen Hawkins, Jr held on 12/14/2010. After prior discussion between the Court and counsel, the parties agreed to add further conditions to the existing Order Setting Conditions of Release issued on 12/8/10. The additional conditions of release were read to defendant and defendant was reminded the original Order Setting Conditions of Release remains in effect. Defendant released from custody. Court adjourned. To order a transcript of this hearing please contact Lori Carr, 816-512-5064. (Carr, Lori) (Entered: 12/16/2010)
12/13/2010 37 SEALED TRANSCRIPT as to Isreal Owen Hawkins, Jr of Hearing on Attorney Representation held December 6, 2010 before Judge Sarah W. Hays. Court Reporter: Lissa Whittaker.(Whittaker, Lissa) (Entered: 12/13/2010)
12/13/2010 36 ELECTRONIC TRANSCRIPT as to Isreal Owen Hawkins, Jr of Show Cause Hearing held December 6, 2010 before Judge Sarah W. Hays. Court Reporter: Lissa Whittaker, 816-914-3613, rapidtranscript@kc.rr.com. NOTICE RE: REDACTION OF TRANSCRIPTS: Within 7 calendar days of this filing, each party shall inform the Court, by filing a Notice of Redaction, of the parties' intent to redact personal data identifiers from the electronic transcript of the court proceeding. The policy is located on our website at www.mow.uscourts.gov. Please read this policy carefully. NOTICE: Attorneys must contact the court reporter for copies during this 90 day period. Notice of Intent to File Redaction of Transcripts due by 12/20/2010. Release of Transcript Restriction set for 3/14/2011.(Whittaker, Lissa) (Entered: 12/13/2010)
Case title: USA v. Hawkins et al
Magistrate judge case number: 4:10-mj-00171-SWH
Date Filed: 11/22/2010
Assigned to: District Judge Ortrie D. Smith
Referred to: Magistrate Judge Sarah W. Hays
4:10-cr-00332-ODS USA v. Hawkins et al
4:10-cr-00332-ODS-1 Isreal Owen Hawkins, Jr
4:10-cr-00332-ODS-2 Teresa Brown
4:10-cr-00332-ODS-3 Johnny Heurung
4:10-cr-00332-ODS-4 Clarence D Moore
Defendant (1)
Isreal Owen Hawkins, Jr
represented by FPD
Federal Public Defender
818 Grand Boulevard
Suite 300
Kansas City, MO 64106
(816) 471-8282
Email: ray_conrad@fd.org
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Public Defender or Community Defender Appointment
Stephen C Moss
Federal Public Defender's Office
818 Grand Ave
Ste 300
Kansas City, MO 64106
816-471-8282
Fax: 816-471-8008
Email: steve_moss@fd.org
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Public Defender or Community Defender Appointment
Pending Counts
CONSPIRACY
(1)
SECURITIES FRAUD
(2)
AGGRAVATED CURRENCY STRUCTURING
(3)
MONEY LAUNDERING
(4)
WIRE FRAUD
(5-6)
Highest Offense Level (Opening)
Felony
https://ecf.mowd.uscourts.gov/cgi-bin/iquery.pl
Yes, it is his opinion and mine to, but that "opinion" is based on factual evidence that will be presented in court....Don't you get it...if this wasn't a scam, it would have been trading three years ago.
That is your opinion.
EOM.
GLTY.
That is good that "Reliable Sources",,, "cough", have informed you of such. The more documentaion the better. Time will tell.
Good Luck To You.
Maybe the IRS was not happy with this part;
REDDOG22, money stolen from people thinking they were investing in an oil and gold company with Billions of dollars in assets when all they were doing is funding a conman's lifestyle with assistance of others or bought PTRZ stock thinking it was the same thing. Reliable sources say that there is documentation of who received the over $302,000 given to friends and family and specifically all of the $217,859 given to the 21 defined "vendors and consultants".
Good luck.
Companies are tax revenue for the government, so there is no incentive for the govt to close down a company...I don't think they have it in for Petro...they are just enforcing the regulatory laws....Owen should have played by the rules, instead of doing what ever he wanted to do....then blame it on the government bodies...
Now you are begining to understand the governments end game with this company. No comapny can function without cash and they know that. Freeze the funds for a year or so watch it go out of business.
PTRZ doesn't have any calls; the Calls are for Petro Kansas church shares where are completely void and worthless on any monetary level and can NEVER become legal tender of any kind or legal share. The call is really just to keep the charade going while they try to come up with an exit plan before they ALL go to jail.
H
Anyone who beLIEves there wasn't any money "stolen" are truly the ignorant ones; there is too much PROOF and DOCUMENTATION to even entertain a glimpse of innocent. REality DOES Hurt :(
H
I listened to Owen Hawkins many times, and he has never came across as a ignorant human being. There was no money stole within Petro America.
In all honesty, I would not expect any earth shattering news from Petro America on the call. Petro will probably reflect on the past year, and we may get a glimpse into things to come for 2011.
That sound a question for the corporate office. The only thing that matters is that the fine gets paid of time.
Wow, That is alot of info..this call tomorrow should be interesting.
If all accounts are frozen by the govt....how are they going to pay them?
I am sure that the company is aware of any dates,and fines they need to resolve.
Yes, and "the company" had better pay the over $300 thousand dollar fines before Mar/Apr of 2011...to keep it going, otherwise, this company will suffer the same fate of WTAI.
That is vey true. The "Fact" of the matter is that neither Petro America(KS) nor PTRZ have been indicted or charged with anything. Only the founder has been charged(Not Convicted). So as of now, the company is free to move forward.
WELL OWENS DIDNT WORKOUT
SO GOOD,BUT OWENS IS NOT THE COMPANY!!! YOU CAN
SAVE THE I TOLD YOU SO, WHEN AND IF PETRO KANSAS
GOES UNDER? IN THE MEAN TIME,PTRZ IS STILL HEAR
AND PETRO CALLS CONTINUE!!! GLTA!!!
GO PETRO!!! GO!
No one likes to hear "i told you so" but a number/few including myself warned on this fraudulent operation 9 months ago.
Owen et al may be released but the piper has to be paid- i expect him to be convicted , directed to make full restitution and serve 2-5 years in a federal detention center-perhaps the will put him in with maddog bernie madoff.
Owen can of course be restored and redeemed once he surrenders his will to the Lord and weeps over his sins with true repentance.
he will never repay $$ to those who trusted in his fraudulent securities operation-the $$ is gone! i hope he did not hide some in a swiss account or bury it to be retrieved later. if so srrender and repentance will be much more difficult.
obviously owen had skills and talents and gifts but he put them to horrible use when they could have been used for the good of humankind.
for those who lost $ or $$$$$$$ bucks in the alleged stock- u were either a dreamer, a trusting soul, one who took a chance knowing it probably was not going to work out but did not invest the "grocery money", maybe a get rich quick person, or maybe a little of all of those. most of u will survive and learn a hard lesson about checking details when something too good to be true is presented to you-and btw stay far away from anyone trying to sell u iraqi dinars for a pittance because they present to u a scenario that the dinar will be the standard iraqi currency in the near future and you will make millions of $$$$-not gonna happen.
the tale so far of owen hawkins is a sad one of falling from grace-i pray redemption will soon follow !
redhat
So I guess that means he is being released.
eom.
glty.
Pacer update 09 Dec 10 USA v Hawkins CRIMINAL COMPLAINT Case Number: 4:10-cr-00332-ODS All Defendants
Date Filed # Docket Text
12/09/2010 35 ***Remark as to Isreal Owen Hawkins, Jr: EMAIL FROM THE COURT TO COUNSEL- Counsel-- It is my intent to add/revise the conditions for Mr. Hawkins and release him from custody. I welcome counsel's input on any of the proposed changes or additions to the conditions of release. 1. Condition 9a. will be modified as follows:9(a) Maintain or actively seek employment and advise the Pretrial Services Officer of the defendant's employment status as directed. The defendant must obtain verifiable employment with an entity other than Petro America, its affiliates or subsidiaries. Additionally, the defendant may not act in any capacity by or on behalf of Petro America its affiliates or subsidiaries including but not limited to as an advisor, consultant, representative, spokesperson, shareholder or unpaid volunteer. 2. Mr. Moss seemed to suggest that we should limit defendant's ability to communicate with shareholders or potential witnesses. As discussed initially almost everyone defendant knows could fall into this category and thus supervision would be difficult. Thus, I propose the following language be added to the additional conditions already set forth under 9(o): Defendant is prohibited from communicating orally, in writing, electronically or through any other medium with anyone other than his counsel or anyone employed by his counsel concerning this case, Petro America, its affiliates or subsidiaries.3. Mr. Moss will need to propose a home plan as to where Mr. Hawkins will live upon release. If anyone has any other suggestions, please advise. EMAIL FROM DAN NELSON: My office agrees with these condition modifications and we have no additional proposed conditions to raise.Thank you, Dan (Gicinto, JoRita) (Entered: 12/09/2010)
12/08/2010 34 ORDER SETTING SCHEDULING CONFERENCE as to Teresa Brown Scheduling Conference set for 12/16/2010 11:30 AM in Courtroom 6E, Kansas City (SWH) before Magistrate Judge Sarah W. Hays. Counsel and defendant were advised that they could request to appear by telephone. Signed on 12/8/10 by Magistrate Judge Sarah W. Hays.(Myers, Dorothy) (Entered: 12/08/2010)
12/08/2010 33 Minute Entry for proceedings held before Magistrate Judge Sarah W. Hays: INITIAL APPEARANCE as to Teresa Brown held on 12/8/2010, ARRAIGNMENT as to Teresa Brown (2) Count 1,2,7-12 held on 12/8/2010. Defendant pleaded not guilty. This case is set on the 1/10/11 criminal trial docket. Defendant is released on a $25,000 unsecured bond. To order a transcript of this hearing please contact Dorothy Myers, 816-512-5059. (Myers, Dorothy) (Entered: 12/08/2010)
Case title: USA v. Hawkins et al
Magistrate judge case number: 4:10-mj-00171-SWH
Date Filed: 11/22/2010
Assigned to: District Judge Ortrie D. Smith
Referred to: Magistrate Judge Sarah W. Hays
4:10-cr-00332-ODS USA v. Hawkins et al
4:10-cr-00332-ODS-1 Isreal Owen Hawkins, Jr
4:10-cr-00332-ODS-2 Teresa Brown
4:10-cr-00332-ODS-3 Johnny Heurung
4:10-cr-00332-ODS-4 Clarence D Moore
Defendant (1)
Isreal Owen Hawkins, Jr
represented by FPD
Federal Public Defender
818 Grand Boulevard
Suite 300
Kansas City, MO 64106
(816) 471-8282
Email: ray_conrad@fd.org
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Public Defender or Community Defender Appointment
Stephen C Moss
Federal Public Defender's Office
818 Grand Ave
Ste 300
Kansas City, MO 64106
816-471-8282
Fax: 816-471-8008
Email: steve_moss@fd.org
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Public Defender or Community Defender Appointment
Pending Counts
CONSPIRACY
(1)
SECURITIES FRAUD
(2)
AGGRAVATED CURRENCY STRUCTURING
(3)
MONEY LAUNDERING
(4)
WIRE FRAUD
(5-6)
Highest Offense Level (Opening)
Felony
https://ecf.mowd.uscourts.gov/cgi-bin/iquery.pl
This actually off-topic now; Mr Hawkins is no longer affiliated with ANY Petro America, Delware (ASWD) or Petro Kansas.
Harley
Just posting another fact here...
http://economy.kansascity.com/?q=node/9161
I was referring to Petro supporters.
dhrr06 Wednesday, December 08, 2010 11:10:03 AM
Re: REDDOG22 post# 11919 Post # 11921 of 11928
Owen was out on bail. You guys sprung him out ....he was under certain orders; Owen knows what they were....he broke those orders, and these are evidence of breaking his bond agreement. That's most likely what they are for, that and proving he has lied to scam people of money and keep the scam going. Everything he's said to the media, shareholders (using that word lightly) is being watched. They were, and are waiting for him to incriminate himself. That’s why I personally can’t believe he held that meeting….I have no idea what the heck he was thinking….he was in deep enough…and he just dug a little deeper.
Since you were replying to me, I must inform you that I have no idea who you are refereing to as "You Guys". I personaly have "sprung" anyone from anything. Please try to keep your facts straight.
EOM.
GLTY.
Yup
http://www.cofad1.state.az.us/memod/cv/cv080640.pdf
Well not the part about the destruction of property. Only read that in blogs. But that is the judgment for them to vacate the property.
Of course and the best part is that the judgment is recorded, by a JUDGE, in the Superior Court where all can see one more judgment against these crooks and deadbeats.
Did your searches find the one where they destroyed an expensive property they rented, lost the case, appealed and lost the appeal too?!
Just that the decision by the Arizona Security Commission is now absolutely final because Brian chose not to dispute the results of the hearing.
Your point is.......
He is ignorant to think he can steal millions & get away with it.
However, ignorance of the law is never an excuse!
Yes, and probably this too...I think they are going to use it in several ways.
Owen was out on bail. You guys sprung him out....he was under certain orders; Owen knows what they were....he broke those orders, and these are evidence of breaking his bond agreement. That's most likely what they are for, that and proving he has lied to scam people of money and keep the scam going. Everything he's said to the media, shareholders (using that word lightly) is being watched. They were, and are waiting for him to incriminate himself. That’s why I personally can’t believe he held that meeting….I have no idea what the heck he was thinking….he was in deep enough…and he just dug a little deeper.
I'm pretty sure that was entered into evidence because Owen wants to be released from prison until the trial and the prosecutors are arguing that he should stay in prison pending the outcome of a trial. That was evidence provided by them to show that Owen should stay in prison.
So what were they entered into evidence for? Anybody?
Yes, all the lies Owen told, and proof you and Bravo were asking for...about what lies Owen told...
My goodness, how you
'stand by your man"....
they should make a song about that! (sarcasm)
scion, thank yo for the court documentation of the lies told by the CEO in the conference calls;
http://viewer.zoho.com/docs/jdGdfe
Good luck
dhrr06, ASWD/ PTRZ filings;
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001122771&owner=exclude&count=40
Hawkins filed to go dark so there were no filings after that.
Good luck.
Looks like just evidence entered in as exhibits in the case by the prosecution to me.
12/06/2010 31 GOVERNMENT'S EXHIBIT INDEX as to Isreal Owen Hawkins, Jr. for Show Cause Hearing on 12/6/10 (Myers, Dorothy) (Entered: 12/07/2010)
Doc 31 PDF file
http://viewer.zoho.com/docs/jdGdfe
Pacer update 07 Dec 10 USA v Hawkins CRIMINAL COMPLAINT Case Number: 4:10-cr-00332-ODS All Defendants
Date Filed # Docket Text
12/06/2010 31 GOVERNMENT'S EXHIBIT INDEX as to Isreal Owen Hawkins, Jr. for Show Cause Hearing on 12/6/10 (Myers, Dorothy) (Entered: 12/07/2010)
12/06/2010 30 Document was a duplicate and has been deleted. Modified on 12/7/2010 (Myers, Dorothy). (Entered: 12/07/2010)
12/06/2010 29 AFFIDAVIT of Financial Status of Isreal Owen Hawkins, Jr. This document contains original signatures of non attorneys and is being maintained in a paper file at the court. (Myers, Dorothy) (Entered: 12/07/2010)
12/06/2010 28 Minute Entry for proceedings held before Magistrate Judge Sarah W. Hays: denying 26 motion for temporary release as to Isreal Owen Hawkins Jr (1); denying 27 motion to dismiss counsel as to Isreal Owen Hawkins Jr (1); SHOW CAUSE HEARING as to Isreal Owen Hawkins, Jr held on 12/6/2010. HEARING HELD. Parties appear in person and with counsel. As a matter of housekeeping, the Court denied defendant's Motion for Temporary Release (Doc. #26). Show Cause Hearing: Plaintiff's witness: Elsie Robinson; Exhibits Plaintiff's 1-8 and Defendant's A. At the close of evidence the Court took the matter of bond for defendant Hawkins under advisement. The Court then took up defendant's request to Dismiss Counsel Due to Ineffective Assistance (Doc. #27). Counsel for the Government and gallery attendees were cleared from the courtroom. The Court finds no reason to grant that request at this time. The Court took the Affidavit of Financial Status for defendant. Defendant remanded to the custody of the U.S. Marshal until a decision is made on the Show Cause hearing. To order a transcript of this hearing please contact Dorothy Myers, 816-512-5059. (Myers, Dorothy) (Entered: 12/07/2010)
Case title: USA v. Hawkins et al
Magistrate judge case number: 4:10-mj-00171-SWH
Date Filed: 11/22/2010
Assigned to: District Judge Ortrie D. Smith
Referred to: Magistrate Judge Sarah W. Hays
4:10-cr-00332-ODS USA v. Hawkins et al
4:10-cr-00332-ODS-1 Isreal Owen Hawkins, Jr
4:10-cr-00332-ODS-2 Teresa Brown
4:10-cr-00332-ODS-3 Johnny Heurung
4:10-cr-00332-ODS-4 Clarence D Moore
Defendant (1)
Isreal Owen Hawkins, Jr
represented by FPD
Federal Public Defender
818 Grand Boulevard
Suite 300
Kansas City, MO 64106
(816) 471-8282
Email: ray_conrad@fd.org
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Public Defender or Community Defender Appointment
Stephen C Moss
Federal Public Defender's Office
818 Grand Ave
Ste 300
Kansas City, MO 64106
816-471-8282
Fax: 816-471-8008
Email: steve_moss@fd.org
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Public Defender or Community Defender Appointment
Pending Counts
CONSPIRACY
(1)
SECURITIES FRAUD
(2)
AGGRAVATED CURRENCY STRUCTURING
(3)
MONEY LAUNDERING
(4)
WIRE FRAUD
(5-6)
Highest Offense Level (Opening)
Felony
https://ecf.mowd.uscourts.gov/cgi-bin/iquery.pl
11/30/2010 24 MOTION AND ORDER to dismiss complaint as to Isreal Owen Hawkins, Jr,. Signed on 11/30/2010 by Magistrate Judge Sarah W. Hays.(Gicinto, JoRita) (Entered: 11/30/2010)
Doc 24 PDF file
http://viewer.zoho.com/docs/edawb
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http://www.petroamericacorp.com/
FOR SEC FILINGS:
http://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=0001122771&filenum=&State=&SIC=&owner=include&action=getcompany
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001447994&owner=exclude&count=40
________________________________________________________________________________________________________________________________
NEWS RELEASE
OFFICE OF THE UNITED STATES ATTORNEY
WESTERN DISTRICT OF MISSOURI
BETH PHILLIPS
Contact Don Ledford, Public Affairs ? (816) 426-4220 ? 400 East Ninth Street, Room 5510 ? Kansas City, MO 64106
www.justice.gov/usao/mow/index.html
OCTOBER 27, 2010
FOR IMMEDIATE RELEASE
KCK MAN CHARGED IN $7.2 MILLION FRAUD SCHEME THAT TARGETED THOUSANDS OF INVESTORS NATIONWIDE
KANSAS CITY, Mo. – Beth Phillips, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Kan., man has been charged in federal court for his role in a $7.2 million securities fraud scheme that victimized thousands of investors across the United States.
“A federal criminal complaint alleges that Petro America was an empty facade of a business run by deception and false promises,” Phillips said. “Petro’s founder is charged with defrauding unwary investors by selling them worthless stock in order to support his lavish lifestyle.”
Isreal Owen Hawkins, 55, of Kansas City, Kan., was charged in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Hawkins is the president and CEO of Petro America Corporation. A related civil forfeiture was filed against Petro America on Friday, Oct. 22, 2010.
The criminal complaint charges Hawkins with securities fraud and with structuring financial transactions in order to evade federal reporting requirements. Hawkins founded Petro America, which bills itself as a holding company for crude oil and gold mines (among other claimed assets) in 2007.
Count One: Securities Fraud
According to an affidavit filed in support of the criminal complaint, Hawkins began selling shares of unregistered stock to investors in 2008. At the time, the affidavit says, Petro America had no oil, no realistic prospects for obtaining, transporting or storing large amounts of oil, no significant assets, no revenue and no other employees. The government is aware of no evidence that Petro America has seriously pursued any opportunities to acquire oil fields or conducted oil trading operations. Nevertheless, the affidavit says, Hawkins and others have touted excellent prospects for Petro’s rapid growth in the oil industry.
According to the affidavit, more than 9,000 victims have invested in excess of $7.2 million since August 2008, but instead of using that revenue for legitimate business-related purposes, Hawkins and his co-conspirators allegedly withdrew investors’ funds from Petro America’s bank accounts in cash, which they spent on personal expenditures such as a house by the lake, luxury cars, a $5,700 fur coat, a $37,000 boat, a $5,200 piece of Louis Vuitton luggage purchased in Switzerland, expensive jewelry and travel.
Hawkins, the only full-time employee of Petro America, paid himself an annual salary of $595,000 under a contract that also granted him a $175,000 bonus, 500 million shares that are immediately exercisable, a company car, a company apartment in Missouri, and a dining card. Hawkins drew his salary in cash, in random amounts at inconsistent times, and the company did not withhold taxes.
Conspirators often recruited investors through churches and used religious language in their pitches, the affidavit says, including promoting Petro America as a once-in-a-lifetime opportunity to “share the blessing.” Petro America cultivated a relationship with the African American Ministers Alliance Group, the affidavit says, and according to its records made large payments to multiple Kansas City-area pastors, religious leaders and a local civil rights activist.
Investors lost from $100 to $100,000 each. Initially, many of the investors were drawn into the scheme with the promise that $100 would buy 100,000 shares of Petro America stock, the affidavit says, which Hawkins claimed was “book valued” at $2 per share. As the scheme progressed, conspirators raised the price to invest and claimed an ever-higher “book value” for the shares. The affidavit alleges that this allowed conspirators to unload shares to new investors at an increasing profit. To date, the affidavit says, the stock has never been properly registered or listed on any exchange.
Hawkins allegedly promised “meteoric returns” on investments. At the height of the scheme, the affidavit says, up to $700,000 flooded into the company each month.
Hawkins claimed that Petro America would be “the first African-American holding oil company to go public in the United States,” according to the affidavit. Investors were frequently told that they would be rich when the company “goes public.” Going public, the conspirators allegedly have said for over two years, is just weeks away. In reality, the affidavit says, the company has no significant assets or revenue stream (other than investor proceeds).
Alleged False Claims
Today’s affidavit alleges that Hawkins and co-conspirators provided materially false information to investors. For example, Petro America’s Web site includes a prominent photograph of the luxury office building at Two Pershing Square, ostensibly Petro’s “world corporate headquarters.” In reality, the affidavit says, Hawkins contracts with Regus Management Group LLC, a secretarial service that provides such services as telephone answering, fax and mail handling, use of the address and 16 hours of office usage for an initial monthly fee of $225.
According to the affidavit, conspirators have touted Petro America acquisitions in gold and rock mines as valuable holdings worth hundreds of billions of dollars. In reality, the affidavit says, Petro America’s interests in the gold and rock mines are essentially worthless. Petro America allegedly adopts wildly high valuations for the mines, most or all of which are not producing anything. Many or all of the mines are not actually mines at all, but mining claims. A mining claim is merely a plot of government-owned land upon which a person or corporation has filed a claim of rights to a mineral deposit, which may or may not actually exist.
Based on these representations, Hawkins and others claim that Petro’s assets are worth more than $284 billion. According to the affidavit, if this valuation were accurate, Petro America would be the second-largest company in the United States by market capitalization, larger than Wal-Mart, Apple or Microsoft. America’s largest company is Exxon Mobil, which has a market capitalization of $312.28 billion.
Count Two: Structuring Financial Transactions
Under federal law, banks are required to file Currency Transaction Reports for financial transactions that exceed $10,000 in one day. It is illegal to conduct multiple cash withdrawals in amounts less than $10,000 for the purpose of evading that federal reporting requirement.
The affidavit alleges that Hawkins and others made large cash withdrawals from Petro America’s bank accounts, which were structured to avoid bank reporting laws. For example, according to the affidavit, Hawkins and an unidentified co-conspirator visited Mazuma Credit Union several times each week. Sometimes they made big deposits of multiple checks into the company’s bank account; on most visits, the affidavit says, they withdrew $7,500 to $9,800, often on consecutive days. In this manner, Hawkins obtained at least $537,515 in cash from Petro’s account at Mazuma. The affidavit also alleges that Hawkins structured currency withdrawals out of Petro America accounts at U.S. Bank and Bank of America.
Web Site Support For Fraud Victims
Two Web sites have been established to collect information from the victims of the alleged securities fraud scheme and to provide updated information about the status of the case. Investors of Petro America are encouraged to provide information via an online form at http://www.postalinspectorsurvey.com/PetroAmerica Due to the volume of expected responses, this process has been automated and placed online; all communication from potential victims regarding the case should be made via this Web site. Updates about the status of the case will be posted at http://www.justice.gov/usao/mow/petro.html
Phillips cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation, the U.S. Postal Inspection Service and the Office of the Missouri Securities Commissioner.
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This news release, as well as additional information about the office of the United States Attorney for the Western District of Missouri, is available on-line at
http://www.justice.gov/usao/mow/index.html
Copies of the Affidavit and Complaint filed by the U.S. Attorney's Office against Petro America Corp:
http://media.kansascity.com/smedia/2010/10/22/22/Affidavit.source.prod_affiliate.81.pdf
http://media.kansascity.com/smedia/2010/10/22/22/Complaint.source.prod_affiliate.81.pdf
Federal prosecutors have set up two websites for victims of the alleged scheme.
39 page criminal complaint against Owen Hawkins:
http://media.kansascity.com/smedia/2010/10/27/19/hawkins_complaint__1_.source.prod_affiliate.81.pdf
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