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one/two of jcds clients... ???? WOW
http://www.dallasnews.com/business/energy/20160627-inside-an-80-million-energy-scam-the-sec-s-story-of-dallas-breitling-energy.ece
Inside an $80 million energy scam: The SEC's story of Dallas' Breitling Energy
What does an $80 million scam look like from the inside? The federal Securities and Exchange Commission laid out its version last week in its complaint against Dallas-based Breitling Energy Corporation, its CEO, Christopher Faulkner, and seven others associated with the company.
As the SEC recounts it, the plot is intricate and includes interlocking companies, bad science, fake financials and an massively effective public relations campaign that turned a tech entrepreneur with a shaky record into the “Frack Master” whose “expertise” was on display on radio and cable TV news shows from coast to coast.
Faulkner’s lawyer denies his client did anything wrong and tags the SEC complaint as a vendetta.
But the complaint has the kinds of details that seem to indicate a scheme that took years of planning and execution.
The SEC account starts in 2009 when Faulkner ran a website data hosting company. At that point, “he had never managed, run, operated, or even worked in an oil-and-gas business.”
He met Parker Hallam and Dustin Michael Miller Rodriguez, who had sold oil and gas investments. They decided to create a company; Breitling Oil and Gas was born. By 2011 Miller and Hallam were selling unregistered investments - working interests in oil and gas prospects in Texas, Oklahoma and North Dakota.
Investors paid their money and Breitling promised to use the cash to drill, test and complete the projects. In fact, the company promised to pay the difference if the cost of development was higher than the estimate sold to the investors.
From January 2011 through December 2013, Bretling sold $43 million in investments.
Why did people buy? One reason was Faulkner, who billed himself in the sales materials as having a“diverse background in the oil and gas industry” with “extensive past experience in all aspects of oil and gas operations. . .”
Why did the buyers believe those claims? He further promoted himself, the SEC says, through high-profile appearances on business-themed radio programs and television shows,"as an expert in 'fracking' - hydraulic fracturing, the process of drilling and injecting fluid into the ground at a high pressure to fracture shale rocks to release natural gas.”
Faulkner also touted his education: A master’s degree in information science from the University of North Texas and a doctorate degree from Concordia College. Never happened, the SEC said.
In the investment pitches, the company told potential customers exactly what the estimated costs of drilling and completion would be for each project and charged accordingly. For a $5 million project, Breitling would sell one percent for $50,000.
But wait, there was more. No management fees.
So the only way the company could make money is if the wells made more money than the original investment or the costs were less than the original estimate.
Faulkner, the SEC says, decided to rig the process: “There was no possibility that the actual costs would ever approach the grossly inflated estimated costs.”
Faulkner took estimates from prior offerings and different kinds of wells to craft his new estimates. And then he marked those up even higher. A lot higher.
In one case, the land costs were $80,000 and Breitling puffed that up to $8.2 million.
The bottom line, the SEC says: The company “raised exponentially more money than it needed to drill and complete the prospects.”
Which might have been OK if the wells produced what Breitling had claimed. But those claims, the SEC said, were based on bogus geology produced by “Simo Energy, LLC and its principal, Mr. Joe Simo.”
Investors were told they were getting independent assessments. But Simo, as it turns out, was Brietling’s vice president for exploration. The SEC says he puffed up the production estimates by basing his numbers on the best producing wells in the area and assuming the new wells would do as well. (Even that wasn’t good enough for Faulkner, who doubled some of the production estimates on his own, the SEC says.)
The claims did not deliver, the SEC says: “Simo’s projections were consistently, and abysmally, overstated; actual production on the wells was often less than 10 percent of Simo’s projections.”
So now the money flowed in. What did Faulkner and associates do with it? A fraction went for drilling wells. Some went for high-on-the-hog, face-to-face wooing of investors. But millions were used for “lavish personal expenditures,” the SEC says:
“In 2013 alone, Faulkner and...Tamra Freedman, Faulkner’s wife at the time, charged approximately $7 million on Amex cards Faulkner used. Faulkner claimed that all of these charges were legitimate business expenses without providing documents identifying the nature of the expenditures,” the SEC said. “Many of the charges were personal, including tens of thousands of dollars in charges to his personal concierge, gentlemen’s clubs, and assorted high-end fashion stores.”
The better to shuffle money around, the SEC says that Falkner and his associates created another company: Crude Energy operated just like Brietling, selling shares in oil and gas wells based on the same kinds of bad information produced by the same people.
Between December 2013 and April 2015, Crude raised more than $38 million from hundreds of investors. Most of that money got pooled with Bretiling. And millions of those dollars, the SEC says, paid for personal expenses on various American Express cards.
Faulkner tossed in a final bit of chicanery as oil prices tumbled in 2014, the SEC says. He created two shell accounts to buy up Breitling stock to make it look like there was actual investor interest.
According to the SEC: “Faulkner’s trading artificially sustained and increased [Breitling’s] stock price.
Finally, in 2015, Breitling started to come clean in SEC filings, saying the financial reports going back to 2012 had problems. And even before the SEC shut the stock down last Friday, its price per share had hit 2 cents.
i am surprised any company would do business with a company who promises things and never delivers..
investors are customers also ...
1.customers want updates
2.customers want surety a business will last
3.when a customer sends a question they want to be called back or written back
lol that is not verifiable proof. that can be any poster posting that. if that is slavo posting on yahoo that is bad sign. they also need to update the company website
lets see the filings and maybe the company put out an official pr saying this
that is pretty dead
$300 is not what i call anything to get happy about, lol
well i guess i have a write off already.. weeeeeeeeee
i love flushing money down the toilet
any updates??????????
Currently HAON has only 581 million shares outstanding and a market cap of around $1.2 million, or close to 1X sales.
sounds like dilution?? what is the free trading
Share Structure
Market Value1 $675,313 a/o Jun 17, 2016
Authorized Shares 650,000,000 a/o Mar 31, 2016
Outstanding Shares 306,960,348 a/o Mar 31, 2016
-Restricted Not Available
-Unrestricted Not Available
Held at DTC Not Available
Float 55,945,018 a/o Mar 31, 2016
Par Value 0.0001
http://www.otcmarkets.com/stock/HAON/profile
HAHAHHAHAHAHHAHAHHAHAHAHH OMGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG
any updates.. no reply to emails
im holding also but its getting to a point where this is just getting old and i can just clean it off the list.
its obvious cary doesn't care about shareholders with the communication he has been giving. but i do believe he does care about his business. which is the only reason why i have been holding as long as i have
ya as much as i feel this company is going to be a mover.. the ceo needs to understand certain people have been with him for a long time. he should be updating shareholders to some extent every year atleast............
im surprised Cary hasn't changed the bad habits because hes thin skinned
lets hope to see some updates soon??????
why dont u call and tell us what they say
well looks like yesterdays vol boom is now gone
weeeeeeeeeeeeeee
up up and away
Have no clue down huge but it was lotto money
Oil Up As Global Outages Seriously Impact Crude Supplies
http://finance.yahoo.com/news/oil-global-outages-seriously-impact-154120259.html
oh so that was sent from QualityStocks? did they ever get paid?
i never got anything at least noting yet
Calling in a few people for next week.. lets see if we can break this over .02! we need this to hit some radars!!!!!!!!!!!!!1
shares are tight and many waiting to see plants
picking back up.. like every stock just needed a breather!
Based on ur post this company is way undervalued
LIVE: Dow jumps triple digits as oil hits 2016 high
http://finance.yahoo.com/news/dow-jumps-triple-digits-as-oil-hits-2016-high-192021762.html
All oil refineries in France now shut down
http://finance.yahoo.com/video/oil-refineries-france-now-shut-143400481.html
gm everyone
OPEC Head Calls for $65 Oil
http://finance.yahoo.com/news/opec-head-calls-65-oil-220500509.html
Fuel blockades lead to shortages in Paris, police action
https://finance.yahoo.com/news/french-fuel-blockades-lead-police-081033255.html
perfect. so did you call the company to get info to your questions you seem to know oil so im sure you can do some dd and tell us non-oil experts what you have learned after you speak to the company.
they have working capital now to rework. at 10 to 15 they were looking for money to rework and never got the funding and now they have so your argument is mute since it was different circumstances
We got "Engaged" - formal announcement going out first of next week! $CGRA We got "Engaged" - formal announcement going out first of next week! $CGRA
GM everyone lets talk about facts and if questions are asked guess what the company is ready to answer if they can
this was spoken about at length already let me high light it for yo
The salaries are deferred
why dont you contact the company and ask if they will do a r/s this year.
let us know what they say..
if your gonna ask the question you should also be ready to get the answer
if a company cant have some fun then why? that is mentality of a lot of startup and many big boards have fun while doing whats right.
go check out google (just one that came to mind)
So ask the question and tell the company your thoughts. I dont understand the hesitation to talk to the company and get the info and maybe they will post it also
Please contact the company and fill us in since ur doing the dd
Wrong
WRONG
MFI Member Level Sunday, 05/22/16 08:15:42 AM
Re: USMC1981 post# 55860
Post # of 55915
If you read on from that paragraph and read the last sentence you will see this is still positive. Go CGRA$$$
The notes include bonds in the amount of $10,268,782, which carries coupon rates of 10% and are due in 2025. Company notes included notes payable to four unaffiliated parties in the amount of $212,517, which are not secured by collateral of the Company, carries accrued interest of 6%-8% and is due on demand by the holders. Another note payable is to an affiliated company of our Chief Executive Officer in the amount of $198,908, is not secured by collateral of the company, carries accrued interest of 6%, and is due on demand by the holder. Loans payable included loans to a third party totaling $55,125, which are secured by equipment purchased for the Company, carry interest rates of 6.3%, and are due in 1-3 years. Assumed debts are associated with our West Salt Creek purchase totaling $503,685 and are not secured by collateral of the company. A final note, in the amount of $231,598, is related to the purchase of our Chewelah, Washington facility and is 5% interest loan secured by our 47-acre industrial site. The Chewelah facility is current in its payments and is in the process of renovation and upgrades. The Company is in the process of restructuring and/or paying off all other notes without further use of equity.