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Michery was either behind this scheme or learned a lot from it, because he's running new one with Mullen Automotive
Appeals court upholds convictions in Petro America case
By BILL DRAPER
Associated Press
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KANSAS CITY, Mo. — ?
Petro America Corp. owner Isreal Owen Hawkins, 60, of Kansas City, Kansas, was convicted in May 2013 of conspiracy, securities fraud, aggravated currency structuring, money laundering and two counts of wire fraud and was sentenced to 30 years in prison without parole. Four other top leaders in Hawkins' Missouri-based company — Teresa Brown, Johnny Heurung, William Miller and Martin Roper — were convicted of conspiracy to commit fraud.
Order Reprint of this Story
A three-judge panel of the 8th Circuit U.S. Court of Appeals said Wednesday that it found no reason to overturn any of the convictions.
"In sum, the government's evidence overwhelmingly established that Petro America was a sham entity that had no real value and that Hawkins, along with several of his coconspirators, used the company as a vehicle to dupe thousands of unwitting investors out of millions of dollars," the court wrote.
Hawkins founded Petro America in Kansas in 2007 and later moved its headquarters to Missouri, where he rented a "virtual office" in a high-rise near the Crown Center shopping mall in Kansas City. He started selling unregistered stock to investors — many of them poor, elderly churchgoers — in 2008 at a cost of $100 per 100,000 shares, promising them that "book value" of the stock would be $2 per share when the company went public.
The company recruited investors through churches, whose pastors promoted Petro as a once-in-a-lifetime opportunity to "share the blessing."
While Hawkins claimed his company had $284 billion in oil well and mining interests, he couldn't afford an attorney and dismissed his public defender before trial, choosing instead to represent himself.
The five were accused of selling $7.2 million worth of unregistered stock and targeting poor investors who weren't qualified to purchase shares.
During his trial, Hawkins told jurors the company was legitimate and that the only reason it didn't go public was because the federal government wanted to destroy it.
The government countered that shares of Petro stock were worthless.
godfather8, what proof of ownership of the invalid Petro America stock do people have? Thanks for any info as it was never discussed what people got when they gave their $$$ to the conmen and conwomen.
Good luck.
With the trial ending does anyone know if any funds were recovered at all to be paid back to investors?
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 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 www.justice.gov/usao/mow/divisions/petro.htm
http://www.justice.gov/usao/mow/news2013/hawkins.conv.html
Oh well;
http://www.postalinspectorsurvey.com/PetroAmerica/
http://www.justice.gov/usao/mow/divisions/petro.htm
Good luck.
Just curious to know if there is still any way at all for me to signup as a victim of this here scam? I purchased several of these stocks when they were being offered and still have all of the certificates, paperwork, etc. Please clue me in on any victim information that I need to now about...Thanks!
Imagine an investor leading them to Windsong.
Old Hillbilly, the whole story was told starting here;
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46636184
Talked about the multi-level marketing, content of the meetings, personal get-togethers, and overwhelming belief by some that what they were being told would make them rich.
Good luck.
Well nodummy you nailed it on Friday, 08/27/10 06:15:44 PM
Thanks for all your help I have learned a lot from this experiance. Looks like JJ dodged the bullet. I don't think she sold any shares herself but sure helped Teresa Brown sell a lot!
Second Petro America figure gets lengthy prison term
A second Petro America Corp. defendant was sentenced Wednesday to lengthy jail time.
Johnny Heurung, a Minnesota resident who talked weekly about Petro America during conference calls with investors, was sentenced to 18 years in federal prison, U.S. prosecutors said. At a trial this spring, prosecutors had called Heurung the pitch man for the scheme.
Heurung had been convicted on one count each of wire fraud and conspiracy. The government had asked for a 20-year sentence. Heurung also was ordered to pay more than $10 million in restitution.
That’s the amount that federal prosecutors said 12,000 investors lost in the Petro America stock scheme. Shares of the Kansas City-based company frequently were pitched through religious themes or by local ministers, often to unsophisticated investors with little money to invest.
Petro’s pitch included the claim that its assets totaled $284 billion from gold mines, oil fields and other holdings.
Participants in the scheme sold stock even after Missouri regulators ordered a halt to the sales. Many shares also were given away to ministers and others to sell. None of the Petro stock sellers were registered to offer securities, nor were the securities registered as investments.
On Tuesday, Petro America founder Isreal Owen Hawkins Jr. was sentenced to 30 years in prison for six felony convictions tied to the scheme.
Hawkins and Heurung were convicted by a federal jury along with three others. Nine other Petro America defendants pleaded guilty to various charges before the trial.
http://www.kansascity.com/2013/10/09/4542330/second-petro-america-figure-gets.html#storylink=cpy
Petro America founder is sentenced to 30 years in prison
October 8
By MARK DAVIS
The Kansas City Star
A federal judge on Tuesday sentenced Isreal Owen Hawkins Jr., the founder and central figure in the Petro America Corp. stock scheme, to 30 years in prison.
Hawkins, who had been convicted of six felony charges this spring, was taken into custody.
Prosecutors had charged that Hawkins and others defrauded 12,000 victims of more than $10 million. Nine others had pleaded guilty to various crimes and four others were convicted at trial alongside Hawkins.
Besides Hawkins, 10 others were scheduled for sentencing this week, with the rest to come in the following weeks.
“Mr. Hawkins was at the top of the pyramid,” Assistant U.S. Attorney Dan Nelson said in seeking the 30-year sentence. “He deserves the strongest and longest sentence.”
Investors from around the nation as well as Canada and the United Kingdom bought shares of the Kansas City-based company.
Many had been lured by religious appeals, were poor or had no investing experience. All were told that Petro owned gold mines, oil fields and other holdings worth $284 billion. The government argued that the claims were fake.
“I’m convinced you believe you have done nothing wrong,” U.S. District Judge Brian C. Wimes told Hawkins before imposing the sentence. “The jury has spoken to that issue.”
He also chided Hawkins for blaming others for the problems.
“You had the ability to stop it,” Wimes said. “You chose not to.”
At times, Wimes spoke emphatically and raised his voice when addressing Hawkins, who sat calmly. He said that Hawkins claimed to be fighting for the little guy, but that’s exactly who was hurt by the stock scheme.
Wimes said that Hawkins had “delusions of grandeur,” notably in comparing himself to famous figures — Mother Teresa and Bill Clinton, prosecutors said — and that Hawkins considered himself a candidate for the Nobel Peace Prize.
In making his appeal for a lighter sentence, Hawkins asked for “leniency and mercy,” adding, “There was no intent by me to defraud anybody.”
And he repeated claims that Petro was real, that the oil fields and gold mines were “producing,” that the “Mercedes I bought was 10 years old” and that he couldn’t control other stock sellers.
At one point, Wimes interrupted Hawkins to get him back to the issue, his sentencing.
“I’m very remorseful for the way things turned out,” Hawkins said.
And he noted that at age 58, a sentence of 30 years would be “like telling someone he’s going to die in prison.”
After Hawkins spoke, his father also appealed to the judge.
“He’s the only help I got,” said Isreal Owen Hawkins Sr., who Hawkins had said would turn 93 this week.
Hawkins’ sister then asked the judge to be lenient, adding that she had bought Petro America shares.
Wimes imposed the minimum sentence called for under federal sentencing guidelines but made clear at the proceeding that he was not bound by the guide. The 30 years was the length requested by the prosecution.
The sentencing guidelines would have allowed a life sentence for convictions on one charge each of conspiracy, securities fraud, aggravated currency structuring and money laundering and two counts of wire fraud.
Hawkins also was ordered to pay restitution of $10,221,735.29, though he had asked for a court-appointed attorney for lack of an ability to afford one.
Also Tuesday, Martin Roper of Kansas City, Kan., who was convicted of conspiracy at the trial, was sentenced to five years in prison and ordered to pay more than $10 million in restitution.
William Miller of Independence, convicted at trial of money laundering, wire fraud and conspiracy, was sentenced to four years and three months in prison and ordered to pay $165,731.14 in restitution.
Allen Collins of Raymore, who had pleaded guilty in April 2012, was sentenced to five years of probation and ordered to pay $186,074 in restitution.
Read more here: http://www.kansascity.com/2013/10/08/4539599/petro-america-founder-sentenced.html#storylink=cpy
http://www.kansascity.com/2013/10/08/4539599/petro-america-founder-sentenced.html
Here is the link to the article:
http://www.pitch.com/FastPitch/archives/2013/10/08/owen-hawkins-tries-to-get-a-new-trial-gets-30-years-in-prison-instead
Looks like Owen will not let go of the money he has hidden away somewhere :( I'm not sure how much the gov was able to freeze in the banks but the victims will not see much return if any.
Roper, Heurung and Brown must be shaking in their boots right now. EOM
Owen Gets 30 Years!!
Owen Hawkins tries to get a new trial, gets 30 years in prison instead
Posted by Steve Vockrodt on Tue, Oct 8, 2013 at 12:48 PM
click to enlarge
There's a good chance Owen Hawkins will spend the rest of his life in prison.
The sentencing hearing is the last stop for the convicted before they find out their punishment.
The procedure is normally a routine one that usually last the better part of an hour. The defendant answers a few routine questions from the judge before humbly asking for leniency. Sometimes family members and friends remind the court that the defendant was a fine person despite their legal troubles.
Not for Owen Hawkins Jr. The former CEO and brain behind the Petro America scam took close to three hours of the court's time before finding out that the 58-year-old will spend the next 30 year behind bars, coupled with a $10.2 million restitution order. That despite his requests for a new trial, for an easy sentence and more time before receiving his sentence.
The $10.2 million in restitution is a working estimate of how much money investors lost when Hawkins and a number of his cohorts sold shares of Petro America after convincing thousands of people that it was a cash-flowing oil and natural resources company. Hawkins said over the years that Petro America, with its headquarters in a virtual office at Two Pershing Square, was a $284 billion company. That would have been one of the biggest companies in the world had Hawkins' facts been straight.
But instead, investigators charged him with running an affinity scam and enriching the Kansas City, Kansas, man who used to live in subsidized housing and drove a minivan around before moving up to a Mercedes and a nice house in the Piper neighborhood.
Hawkins was found guilty in May of a gamut of financial crimes following a five-week trial. Hawkins on Tuesday, like he did during the trial, represented himself instead of using a lawyer. His pro se approach seemed like an annoyance to U.S. District Court Judge Brian Wimes, but it posed far bigger problems for Hawkins himself.
Hawkins papered the court docket with a number of filings trying to convince Wimes to order a new trial. Most of them Wimes didn't bother addressing because Hawkins didn't file them within court-proscribed deadlines, the sort of thing a lawyer would have been mindful of.
One, for example, was filed four months after Hawkins' conviction in May, despite legal rules that require it get filed 14 days after the end of the trial.
He claimed that there was jury misconduct because one juror ended up being his seamstress for the high-priced suits he paid for with cash at the Halls store. Wimes didn't buy it.
Wimes implored Hawkins to take a court-appointed attorney, but Hawkins wasn't interested. Interestingly, the one time during the whole criminal proceedings that Hawkins did use a lawyer, it worked for him. He used a court-appointed lawyer to represent him during the bond hearing after his conviction. That worked to buy him some time out of prison for a few months while he awaited sentencing.
A lawyer might have instructed Hawkins to show some remorse for his crimes, to perhaps score some points with the judge and get a few years shaved off his sentence. But an unrepentant Hawkins told a packed courtroom in Kansas City that he was an "advocate for the little guy" whose company would have soared into the corporate stratosphere but for the government asking pesky questions. He called investigations by the Department of Justice, the Securities and Exchange Commission and secretaries of state from both Missouri and Kansas a "smear campaign" by people "trying to ruin something they didn't understand."
Assistant U.S. Attorney Dan Nelson said Hawkins could have spared himself three decades in prison if he had just shut Petro America down the first time he was told.
"He's just a con man, your honor," Nelson told Wimes. "He was told over and over and over by the government to stop, and he didn't stop."
Finally, Wimes seemed to have enough. He launched a long admonition directed toward Hawkins that verged on yelling and was coupled with wild gesticulations not often seen from a federal judge.
"The very thing you're trying to protect - the little man - you're destroying," Wimes said. "They're out of that money."
Prosecutors estimated about 12,000 investors were bilked. Hawkins protested. He said it was more like 5,400. Still, Hawkins thinks he has done nothing wrong. He indicated that Petro America is still a going concern that has a new CEO. It's unclear who that person might be, but Hawkins' associates still maintain that Petro America is the real deal. Just check out Martin Roper's hourlong video explaining "the real truth" behind the company.
Roper was also scheduled for sentencing on Tuesday
Owen Hawkins is looking at a possible 30 years in prison. EOM
Today is the day, waiting on the news :) More to follow!
Sentencing dates set in $10.2M Petro America fraud caseStaff
Kansas City Business JournalSentencing dates have been set for thirteen people involved with a $10.2 million stock scam that targeted black churchgoers that bought into a scheme that sought investment in phony oil wells and gold mines, The Kansas City Star reports.
Petro America Corp. Founder and former CEO Israel Owen Hawkins Jr., convicted of securities fraud, aggravating currency structuring, money laundering and wire fraud, had been released in May on a $50,000 bond. He now faces a U.S. District Court judge on Oct. 8 at 9 a.m.
Here's the timeframe for others:
• Oct. 8: Hawkins sentencing will precede those of Martin Roper, William Miller and Allen Collins.
• Oct. 9: Johnny Heurung, Teresa Hill, Charles Hooker
• Oct. 10: Russell Hopkins, Brian Langenbach, Curtis White
• Oct. 11: Teresa Brown
• Oct. 18: Joseph Harrell
• Nov. 14: Edward Halliburton
dhrr06, no more trials; Owen Hawkins is a few weeks away from prison;
http://www.stltoday.com/news/state-and-regional/missouri/petro-founder-says-lies-race-led-to-conviction/article_504e661f-80a6-5cda-a3a4-5687bc0537a0.html
Good luck.
Why does Owen need another trial. He had no ligit reasons. He just based his reasons off another trial that took place in the 30's. We've come a long way since then. He claims only one of the jurors was black. But he didn't mention that the judge was black.
I can't believe anyone would still believe that Petro is legitimate. If they sold a gold mine, why??? Why get 5 million dollars if it's really worth 84 billion dollars? Was it 5 million dollars cash? Or promissory notes no one will ever pay? Or 5 million dollars worth of worthless stock? I guess the question is, purchase with what? I'm not a 100 % sure, but if these guys were convicted (they were) you can take a loss on your taxes for theft. Double check with an attorney or accountant. I'm not giving advice. It's just makes sense. I'm not a lawyer but I have heard that.
Plus one other question about the video Martin made. Why not give us all that information up front when everyone was asking questions about the company? Why wait until now???? If they are really sincere ministers, they shoud have plenty of time ministering in the federal pokey?
Owen Hawkins and thirteen others convicted of fraud for their part in the Petro America stock scam will be sentenced during October and November; Owen Hawkins will be sentenced at 9:00am on October 8th.
http://www.kansascity.com/2013/08/21/4423412/petro-america-sentencing-dates.html
And we know Teddi Berkowitz was the center of all kinds of other scam and worthless programs being peddled and sold to Petro "shareholders", such as wealth protection schemes and the Iraqi Dinar scam. She also ran the conference calls. IMO, Teddi is one of several others that should have been charged by the DOJ.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61151028
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56867693&txt2find=berkowitz
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56611429&txt2find=berkowitz
Return address showed it came from Teddi Berkowitz.
There is absolutely no possibility this could "work out". None. And there are absolutely no assets in the company at all.
The obvious reason for that message is that the people behind it used Petro and the promise of riches to sell other scam programs to the Petro "shareholders". They cannot allow those people to realize the dream is over, or else they will blow the whistle on the other scams they ran. They need to "keep the dream alive" in order to keep themselves out of trouble.
The Feds put in prison a lot of the criminals involved in the Petro scam, but this letter demonstrates they didn't get them all.
I posted something similar awhile back....
What do they possibly have to gain?
Looks like there is a real possibility this could
work out.
Hmmm, that was a long time ago. Let see.. I think I bought 17 billion shares for 20 bucks. Yah, that sounds about right.
Look at this BS that got sent to me the other day. What the hell!!
<Hard copy attached>
THIS IS AN OFFICIAL CORPORATE NOTICE. PLEASE READ IT CAREFULLY.
THIS IS AN OFFICIAL REQUEST FROM PETRO AMERICA CORP OFFICERS
TO FINALIZE CONFIRMATION OF ALL SHAREHOLDER INFORMATION
PRIOR TO THE PROCESS OF ATTEMPTING TO TAKE THE COMPANY PUBLIC.
IT IS VITAL TO HAVE THIS INFORMATION DOCUMENTED BY
*** SEPTEMBER 1, 2013 *** SAVE THIS DATE ***
July 9, 2013 VIA EMAIL
REQUEST FOR INFORMATION
To: All Petro America Corp Shareholders
From: Petro America Corp
Winston G. Robinson, Ph.D., Chief Executive Officer
Gailmarie Scott, Ph.D., Chief Operating Officer
10940 Parallel Pkwy., Suite K-144
Kansas City, KS 66109
Dear Shareholders,
On behalf of Petro America Corp of Kansas, we have worthy news about the status of the company. As Chief Executive Officer, it is my pleasure to extend an official Request for Information to all shareholders prior to the process of attempting to take the company public.
CURRENT SITUATION
We understand that the recent litigation involving the company’s reputation have been challenging, however the status of the company is "Active and in Good Standing" with the State of Kansas and all corporate filings can be viewed at www.kssos.org/business (for a business search).
We have held preliminary discussions with potential asset holders, legal and trading professionals, and a CPA. We will advise you in the future of initial funding for legal fees, etc. as we move forward.
WE HAVE BEEN ADVISED TO PROCEED WITH CAUTION
BY THE COMPANY’S LEGAL TEAM AS LISTED HEREIN.
PLEASE DIRECT ALL INQUIRIES TO THE
COMPANY’S LEGAL TEAM AS LISTED HEREIN.
Pg. 2 of 2
SHAREHOLDER INFORMATION
The most viable asset of a company is its shareholders and it is critical to have an accurate assessment of the status of the company as we proceed. In order to determine the price of the stock by engaging the asset holders, all current and factual shareholder data must be confirmed, such as contact information, confirmed amount of shares purchased or gifted, and other pertinent facts.
Please complete the “Petro Shareholder Information Form” as attached, and submit by mail delivery service, email, or fax to Petro’s attorney as follows:
Mr. Anthony Pantano, Attorney at Law
Nowell Amoroso Klein Bierman, P.A.
Counsellors at Law
155 Polifly Road
Hackensack, NJ 07601
(201) 343-5001 Office
***ATTN: Petro Shareholder Information***
BY MAIL DELIVERY SERVICE:
° FedEx, UPS, DHL, or other package delivery service with tracking numbers
° ***ATTN: Petro Shareholder Information***
BY EMAIL: attorney@petroamericacorp.com
° In subject line, please enter: ***ATTN: Petro Shareholder Information***
BY FAX: (201) 343-5181 Fax
° In subject line, please enter: ***ATTN: Petro Shareholder Information***
Feel free to forward this vital information to as many shareholders as possible. Our website is under reconstruction for future OFFICIAL CORPORATE UPDATES to shareholders.
We appreciate your continued patience as we advance forward.
Sincerely,
Winston G. Robinson, Ph.D. Gailmarie Scott, Ph.D.
Chief Executive Officer Chief Operating Officer
Enclosure (1)
Petro Shareholder Information Form
cc: Anthony Pantano, Attorney for Petro America Corp
This message contains confidential and privileged information. Any review, re-transmission, dissemination or other use of this information by persons or entities other than the intended recipient is prohibited. This material is for information purposes only and is not a solicitation. If you received this email in error, please contact the sender by reply email and delete the material from all computers. Thank you.
The fact that you don't know this, is exactly what perpetuates this "Petro" Myth. You better buy more shares if you can get them....LOL!
Martin Roper, 47, of Kansas City, Kan., was convicted of CONSPIRACY
That's kind of a fitting conviction....
http://www.kansascity.com/2013/05/15/4237488/petro-america-defendants-convicted.html
Dr H
I will say that the end of the video is pretty impressive with all the people listed with their contact information who were involved (Geologists, Transfer Agent, Market Maker etc.). Did anyone bother to call them and check it out?
If there's any truth to the potential business investor taking over it makes you wonder...
Was this Martin Roper part of the criminal trial?
As soon as you make an hour long video saying how "real it is" and you are not guilty, you are most certainly GUILTY! LOL!
Reminds me of OJ trying on the glove...
Dr H
Same with greed. Which is definitely what powered this scam.
Stupidity can be cured with knowledge. Greed? Not so much. It doesn't even look like prison time is doing much to even slow down the greed in Petro.
Never underestimate the power of stupidity...NEVER.
These people are even more stupid than I thought. Which is really saying something, because I thought they were very stupid all along.
I don't have an hour to spare right now to watch Roper push worthless conspiracy theories, but my god, how dumb is he in posting that video? He has been found guilty, but not yet sentenced. This video is solid proof that he is still committing illegal acts in promoting an unregistered security! And he even states the time and date at the beginning of the video, just in case someone tried to argue he made the video prior to the trial!
I wonder if the US Attorney's office has seen that video, as it may have an effect on their sentencing recommendation............
Ridculous yet sad at the same time;
I guess Owen missed Voir dire! The story also fails to explain how Owen believes that is in any way juror misconduct.
He definitely had a fool for a client.
Petro America CEO Owen Hawkins wants a new trial, claims juror misconduct
Posted by Steve Vockrodt on Tue, May 28, 2013 at 3:06 PM
File
A juror might have tailored this suit worn by Hawkins
Isreal Owen Hawkins wants a new trial because one of the jurors who helped convict him in the Petro America case apparently tailored his suits.
Hawkins, who is out on bond and faces 79 years in federal prison for running the Petro America racket, claims in a post-conviction court filing that one of the jurors was a Halls Department Store employee who once did alterations on his suits between 2008 and 2010.
But Hawkins, who represented himself during the Petro America trial because he didn't want a court-appointed attorney, didn't realize until after the month-long trial that he had been facing the person who had allegedly tailored the suits he paid for with cash.
It's always hard to predict how a judge will rule, but Hawkins has not fared well so far with his own defense.
A jury took about a day to decide he was guilty of representing that he was in charge of a $284 billion Kansas City natural resources company, which prosecutors said was the vehicle for an affinity scam. The trial was marked by frequent interruptions from the judge, who had to remind him of various courtroom rules.
Hawkins is out on bond while he awaits sentencing, or less likely, a new trial.
http://www.pitch.com/FastPitch/archives/2013/05/28/petro-america-ceo-owen-hawkins-wants-a-new-trail-claims-juror-misconduct
Hawkins, who founded Petro America in 2007, called it the "People's Company" and told shareholders he expected to be awarded a Nobel Prize for creating such vast wealth for average folks who didn't otherwise have access to the American dream.
Petro America chief's suit hurt by guilty verdict
By BILL DRAPER, Associated Press
Updated 10:43 am, Monday, May 20, 2013
KANSAS CITY, Mo. (AP) — The founder of Petro America Corp. has little chance of prevailing in a $100 million civil lawsuit he filed against prosecutors and the Department of Justice after a federal jury convicted him on six counts of felony fraud, a former federal prosecutor said.
Isreal Owen Hawkins, 57, and other company leaders were accused of security fraud and conspiracy for falsely claiming the company had $284 billion in assets, illegally selling the stock and pocketing more than $10 million in proceeds. Prosecutors said Petro stock was as worthless as "used Kleenex."
In the civil lawsuit filed in April, just days before the start of the criminal trial, Hawkins held that assistant U.S. Attorney Daniel Nelson, IRS special agent Devin Fields and the Department of Justice had committed prosecutorial misconduct by ignoring evidence that proved Petro America had billions of dollars of assets.
After hearing more than three weeks of testimony, jurors convicted Hawkins and four co-defendants Wednesday of a total of 15 felony counts. Hawkins, of Kansas City, Kan., was immediately taken into custody, pending a bond hearing Tuesday.
The result of the criminal case doesn't bode well for his civil case, former U.S. Attorney Todd Graves said Friday.
"If he's alleging prosecutorial misconduct and has been convicted, his chances are slim and none, and slim just left town," Graves said. "Nothing is an automatic, but that's about as close to an automatic as you can get."
Don Ledford, a spokesman for U.S. Attorney Tammy Dickinson, said prosecutors could file a motion to dismiss or seek other resolution, any of which would require a judge's ruling.
"The lawsuit has to get resolved one way or another," he said.
Hawkins, who founded Petro America in 2007, called it the "People's Company" and told shareholders he expected to be awarded a Nobel Prize for creating such vast wealth for average folks who didn't otherwise have access to the American dream. He said the government's sole intent was to destroy Petro, a contention he also made during the criminal trial in which he represented himself.
"Mr. Hawkins, he's a standup guy," he told jurors in closing arguments. "He doesn't run from big government."
Read more: http://www.ctpost.com/news/crime/article/Petro-America-chief-s-suit-hurt-by-guilty-verdict-4530715.php#ixzz2TqUfQuTM
http://www.ctpost.com/news/crime/article/Petro-America-chief-s-suit-hurt-by-guilty-verdict-4530715.php#ixzz2TqUNCB3P
Slim_2006, Petro America was not a real investment so it cannot be written off;
Petro America was a pure scam from day one. Everyone who put money into it lost everything.
Good luck.
How can we write this off on Taxes or are we going to get a refund of some sort?
As true as I spoke it the first time; I hope we deffered a few from throwing their money down the toilet. I also hope Owen serves at least a year for every million he swindled; 7 Years in the clinker, plus a plan to repay the victims as much as possible.
Dr H
Not compared to the time he will be spending in jail I guess!
"He now faces up to 79 years in prison."
You know what your first post was?
This is a PURE scam. No doubt about 07/22/2009 03:03 AM
2 months shy of 4 yrs!
I see you still have the Degree I made for you
Take care.
That didn't take long at all, did it! Those poor jurors were probably cursing Owen for wasting their time...."Taken into custody"....the best place for him.
Dr H
Attorneys make closings in Petro America trial
By By Bill Draper
May 14, 2013
http://www.businessweek.com/ap/2013-05-14/attorneys-make-closings-in-petro-america-trial
KANSAS CITY, Mo. (AP) — Despite the best efforts by federal prosecutors to portray the company he founded in 2007 as worthless, Isreal Owen Hawkins told jurors Tuesday that Petro America Corp. is real, has real assets, and is in trouble only because big government decided to destroy it.
Hawkins, 57, and four co-defendants are charged in federal court in Kansas City with conspiracy to commit securities fraud and assorted other counts involving Petro America, which company leaders touted as having $284 billion in assets — second in the U.S. only to Exxon — despite being in existence less than three years.
Hawkins, who represented himself in the more than three-week trial, showed jurors several large binders during closing arguments Tuesday, telling them they contained contracts for billions of dollars in mining and oil operations.
"The government is trying to convince you that this company isn't real," he said. "They're railroading people. They're railroading shareholders."
Of the five defendants on trial, Hawkins was the only one who claimed the case against Petro America was part of a "big government" conspiracy. Attorneys for the other four — Theresa Brown, Johnny Heurung, William Miller and Martin Roper — claimed their clients were true believers in the company who acted on good faith, and that any misrepresentations to shareholders were because that's what Hawkins had told them.
In her closing arguments, Assistant U.S. Attorney Kate Mahoney questioned whether Hawkins was "delusional or really that stupid" to believe he could build what would be the nation's second-largest corporation with no financial investment of his own in such a short period of time.
"You don't have to be around him very long to realize he is utterly incompetent," Mahoney said. "He doesn't follow through, he just makes excuses. He thinks this is how business is done."
Brown is charged with six counts of wire fraud and one count of securities fraud, in addition to the conspiracy count. Her attorney, Willie Epps Jr., acknowledged that she kept millions of dollars from the sale of her shares and spent it on lavish things like boats and expensive luggage. But he said she acted like anyone else might when they come into a large amount of money in a short time.
"Theresa Brown thought Petro America was legitimate, was a real company, and was her lottery ticket, essentially," Epps said. "She thought everyone was going to get rich."
Rather than hiding her purchases, she left an easily followed paper trail of receipts and bank transactions because she thought everything was legal, he said.
Heurung, who was portrayed as a pitch man who had the ability to get investors excited about the company over regular telephone conferences, is charged with two counts of wire fraud in addition to conspiracy.
Heurung believed everything he told shareholders because he was passing on information he had received from Hawkins, his attorney Lance Sandage said.
Sandage said his client never sold any of the shares that had been gifted to him by Hawkins, and he truly believed mining operations he had located for the company were legitimate investment opportunities.
"Johnny was taken advantage of by Petro America," Sandage said.
Miller's attorney, David Guastello, said his client got excited about Petro America because of what he had been told by others in the company, including Hawkins. It was clear Miller didn't intend to defraud investors, Guastello said, because most of the people he recruited were his family and friends.
Instead, Miller believed it when Hawkins told him the Missouri cease and desist order had been taken care of, and he believed the company was on the verge of going public.
"Bill Miller thought he was sitting on $25 million," Guastello said.
Jack West said his client, Roper, is a lifelong Kansas City-area resident who was just acting like everybody else but wasn't a part of any conspiracy to defraud investors.
Roper merely repeated what he heard from Hawkins when making claims about the company's assets and promising it was on the verge of going public, West said.
"A lot of people believed in Owen Hawkins and Petro America, and a lot of people still do," West said.
The maximum sentence for conspiracy is five years in prison. Some of the other charges, such as wire fraud and mail fraud, come with maximum 20-year prison terms.
http://www.businessweek.com/ap/2013-05-14/attorneys-make-closings-in-petro-america-trial
Current Trial News:
Monday News:
http://finance.yahoo.com/news/closing-arguments-delayed-petro-america-132823659.html
Tuesday:
http://finance.yahoo.com/news/closing-arguments-delayed-petro-america-132823659.html
Petro America trial nears end of 3rd week, judge admonishes lead defendant for delays
By BILL DRAPER Associated Press
May 09, 2013 - 6:49 pm EDT
http://www.therepublic.com/view/story/591576cad0174622847fc4ef9222924e/MO--Petro-America-Trial
[...]
Hawkins, 57, of Kansas City, Kansas, has no formal legal training but has been defending himself throughout the trial. On Thursday, U.S. District Judge Brian Wimes scolded Hawkins for filing a list of 32 new witnesses earlier this week and taking other actions that have bogged down the trial.
"You've done things that delay or hold up this court," Wimes said before jurors were brought into the courtroom. "I don't need to know, and the jury doesn't need to know, what high school (witnesses) went to.
"I'm not going to revisit this," the judge said. "I've talked to you the last two weeks about this. We're moving forward."
Despite Wimes' warning, progress was slow Thursday morning as prosecutors and defense attorneys voiced at least 20 objections to Hawkins' questions in the first hour. Wimes sustained most of them.
[...]
more
http://www.therepublic.com/view/story/591576cad0174622847fc4ef9222924e/MO--Petro-America-Trial
Well, with closing arguments expected to start early next week that should at least wrap up the trial part. Then it's just waiting on the jury to make a decision.
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May 15, 2013 04:51 PM EST | Associated Press
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KANSAS CITY, Mo. — A jury on Wednesday convicted the founder of a Kansas City company and four associates of cheating investors by selling them millions of dollars of worthless stock and spending the money on themselves.
Petro America Corp. founder Isreal Owen Hawkins and his associates were accused of illegally selling unregistered stock in Petro America from 2008 through 2010, much of it to poor investors. Prosecutors said investors were told the company had $284 billion in assets and that they'd be rich once it went public.
Hawkins was convicted of conspiracy, securities fraud, aggravated currency structuring, money laundering and two counts of wire fraud. He could be sentenced to up to 20 years in prison for the most serious charge, wire fraud.
Hawkins, who had been out of jail on bond, was taken into custody immediately after the hearing and the government moved to have his bond revoked. The court set a bond hearing for next week to rule on the government's motion.
Hawkins' co-defendants – Teresa Brown, Johnny Heurung, William Miller and Martin Roper – each were convicted of conspiracy to commit fraud, which carries a maximum sentence of five years in prison. All were released pending sentencing.
The five were accused of selling $7.2 million worth of unregistered stock and targeting poor investors who weren't qualified to purchase shares. Under federal securities law, a person must have a net worth of at least $1 million or an annual income of $200,000 for the last two years to qualify as an accredited investor and be allowed to take part in high risk investments such as Petro America.
Hawkins called Petro America "The People's Company," and told investors his goal was to win a Nobel Prize for creating massive wealth.
Hawkins, who represented himself at the trial, told jurors the company was legitimate and had real assets, and the only reason it didn't go public was because the federal government wanted to destroy it.
Attorneys for some of his co-defendants expressed disappointment Wednesday in the verdicts and vowed to appeal the decision to the 8th Circuit U.S. Court of Appeals.
"We have strong issues for an appeal to the 8th Circuit, but at this time it's really not about Miss Brown and the results," one of Brown's attorneys, Willie Epps Jr., told The Associated Press. "It's about the thousands of Petro America victims who lost significant resources. For that, Miss Brown is sorry and we hope in time she will be seen as another Petro America victim and not a Petro America leader."
Lance Sandage, who represented Heurung, said his client also plans to appeal.
"We're disappointed in the jury's verdict, but we respect the process," Sandage said.
Attorneys for Miller and Roper didn't immediately return calls for comment.
Attorneys for all of the co-defendants told jurors Hawkins had duped their clients. They said the four didn't know that the stock sale was a scam because they said Hawkins was the primary source of information about the company. With no real corporate structure, the co-defendants said they relied on what they were told by Hawkins – including that the Missouri cease and desist order had been resolved – when promoting and selling the stock.
Prosecutors, however, said all five defendants knew that Kansas and Missouri regulators had sent cease-and-desist orders barring the sale of Petro America stock, but that they chose to ignore them.
On Wednesday, Brown also was convicted of securities fraud and six counts of wire fraud, Miller was convicted of money laundering and wire fraud, and Heurung was convicted of one count of wire fraud. Nine others who were charged in the case pleaded guilty to conspiracy and are awaiting sentencing.
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.
****************
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
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
NOVEMBER 22, 2010
FOR IMMEDIATE RELEASE
PETRO AMERICA
FOUR DEFENDANTS INDICTED IN $7.2 MILLION
SECURITIES FRAUD CONSPIRACY
SCHEME TARGETED THOUSANDS OF INVESTORS NATIONWIDE
KANSAS CITY, Mo. – Beth Phillips, United States Attorney for the Western District of Missouri, announced that four defendants were indicted by a federal grand jury today for their roles in a $7.2 million securities fraud conspiracy that victimized thousands of investors across the United States who bought shares in Petro America Corporation, which was purported to be a profitable oil trading company.
Isreal Owen Hawkins, 55, of Kansas City, Kan., Teresa Brown, 52 of Bandera, Texas, Johnny Heurung, 56, of Saint Paul, Minn., and Clarence Moore, 62, of Atlanta, Ga., were charged in an 14-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Hawkins on Oct. 26, 2010, and includes additional defendants and charges.
Today’s indictment alleges that, since Sept. 1, 2008, Hawkins, Brown, Heurung and Moore have participated in a conspiracy to commit securities fraud and wire fraud. Hawkins, Brown and Heurung were among those who promoted Petro America and sold shares to investors. Moore did accounting work, including tax preparation, for Petro America.
According to the indictment, Hawkins and Brown – who have never been licensed to sell securities – began an unregistered offering of shares of Petro America to investors in August 2008. In the first four months, the indictment says, Petro America raised about $1 million by selling stock through its Web site and presentations to church congregations, and continued raising money afterwards.
According to an affidavit filed in support of the original criminal complaint, more than 9,000 victims have invested in excess of $7.2 million since August 2008.
The defendants used religious language in their pitches and often recruited through churches, the indictment says. They allegedly gave payments to church figures, who recruited members of their congregations to invest.
Alleged False Claims
The federal indictment alleges that the sale of Petro America stock was accomplished by making fraudulent material misrepresentations and omissions to investors. For example, the indictment says, defendants falsely claimed that Petro America was worth $284 billion and Petro America stock was worth $24 per share in order to induce people to invest. There was no basis for those numbers, the indictment says.
Hawkins allegedly approved a series of press releases that were materially misleading and failed to disclose material facts related to investing in Petro America.
Heurung and Brown allegedly sent e-mails to investors in June 2009, falsely claiming that Petro America had gone public and its stockholders had become millionaires. In reality, the indictment says, Petro America had not been publicly listed on any exchange, nor had it merged with any company that was publicly traded.
The indictment alleges that defendants fraudulently attempted to create the appearance that Petro America had tangible assets. This was allegedly done by swapping stocks for interests in gold mines, for example, and by claiming that Petro America had conducted “reverse mergers” with two other companies.
The indictment also cites false and misleading statements made by Heurung during a series of conference calls in which he stated, “this stock is forecasted to do better than Microsoft ... right now we’re larger than Coca-Cola ... I am looking at a room of more millionaires in one place than I’ve been in a long time ... there’s gonna be some major billionaires in here.”
Alleged Personal Expenditures
From September 2008 through April 2010, Hawkins received nearly $2 million from Petro investors into accounts he controlled. Very little of these funds were reinvested into the company. Instead, Hawkins used investor money to purchase such items as a Chrysler 300, a Hummer H3, a 2004 Mercedes S430, 16 designer suits totaling $8,709 that were purchased on eBay and a $5,700 fur coat. In October 2009, Hawkins attempted to purchase a lakefront house in Kansas City, Kan. The purchase fell through, but Hawkins continued to make monthly rental payments of $3,025, which totaled at least $42,815. In addition, Hawkins paid himself a salary of $595,000 and had a contract that provided a guaranteed bonus of $175,000, a company car and a dining card.
Hawkins allegedly distributed at least $303,200 of investor money to at least 36 friends and shareholders of his choosing; in addition, Hawkins allegedly made cash payment totaling $217,859 to 21 “vendors and consultants.”
From June 2009 through April 2010, Brown spent at least $542,197 of Petro America investor proceeds on personal expenditures, including a boat, an SUV, travel to Switzerland, Cape Cod, Europe, Panama and elsewhere, several expensive handbags, designer luggage, home design items, more than $81,000 worth of jewelry and the mortgage on a timeshare in Virginia Beach.
Additional Charges
In addition to the criminal conspiracy, Hawkins is charged with one count of money laundering, two counts of wire fraud and one count of structuring financial transactions in order to evade federal reporting requirements. Hawkins and Brown are charged together in one count of securities fraud. Brown is also charged with six counts of wire fraud. Heurung is also charged with two counts of wire fraud.
Today’s indictment also contains a forfeiture allegation, which would require Hawkins, Brown and Heurung to forfeit to the government any property derived from the proceeds of the alleged offenses.
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 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 www.justice.gov/usao/mow/petro.html
Phillips cautioned that the charges contained in this indictment 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.
****************
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
More charges for Petro America founder, others
http://economy.kansascity.com/?q=node/8975
Doc 16 PDF file
http://viewer.zoho.com/docs/qEbjW0
Copy of the certificates used by the perpetrators of this alleged scam:
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