Pilgrim Petroleum Corp. (PGPM)

[1manband]

PGPM set the value of assets on the 2008' report, it may be less but could be more.

And that is the definition of FRAUD.

first of all, the 2008 report is a Canadian NI 51-101 report (prepared for a completely different company, BTW). US law prohibits its use in the US, not to mention it was many years old. Even it was permissible to use it, laws require it be updated annually. Strike 1.

By law (and in Canada, too), the term "Proven Reserves" has legal meaning. There is a specific set of criteria that must be met to classify them as such. PGPM's did not even come close to meeting half of the criteria, much less all of them. They were committing fraud by using the term when they either knew, or were required to know, they couldn't. Strike 2.

And Strike 3 is that even if they had proven reserves, they could not book the perceived value on the balance sheet. That is strictly prohibited under GAAP. To do so is FRAUDULENT. People routinely go to prison for doing that.

The fraud in PGPM is extremely easy to see. No question about it.