OMDA Oil and Gas, Inc. (OOAG)

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F. FACTUAL BACKGROUND

i. Lanza’s Modus Operandi
37. Lanza is a professional con man. He has become a master at pumping a stock on the open market while siphoning away its resources to various companies owned either by him, his family, or frontmen. Typically, Lanza’s modus operandi is to establish a public company offering shares on the OTCBB or Pink Sheet exchanges. As soon as shares of the public company began trading on the open market, Lanza, his family members, or one of his companies run by his frontmen, would enter fictitious “consulting agreements” creating an account payable on the public company’s books. Lanza would then, through a variety of methods, pump the public company’s stock, attempting to entice unwitting investors to purchase the public company’s, usually worthless, stock. Once the company received funds, however, Lanza would insist that it be used to first repay him, his family members or frontmen. Oftentimes, since the public company had no cash to pay these fabricated debts, Lanza would instruct the company to issue stock in lieu of payment. If the stock price rose, Lanza, his family members or his frontmen stood to gain 200% to 1000% of their “investment” for doing little or nothing to enhance the company’s value.
38. Lanza is also a convicted felon. On April 2, 1997, he was convicted of tax evasion. Lanza was incarcerated for nearly a year at the Nellis Federal Penitentiary Center in North Las Vegas, Nevada.
39. Lanza’s activities have not gone unnoticed by the SEC. On October 19, 2000, Lanza entered into a Consent Judgment with the SEC for making “false and misleading statements in the course of recommending the purchase of Members [Service Corporation] stock.” He was required to disgorge $265,214 plus prejudgment interest of $239,085. Payment was waived, however, when Lanza provided an affidavit claiming that he was financially insolvent. The Commission’s Complaint alleged that the majority of the money was funneled to Lanza’s wife, Jayne Lanza. Lanza was permanently enjoined from violating Sections 5(a), 5(c), and 17(a) of the Securities Act, and Section 10(b) and rule 10b-5 of the Securities Exchange Act.

http://www.omogoil.com/new/Final_Fifth_Amended_Petition.doc

20. Defendant Jayne Lanza is an individual who may be served with process at her abode, 10992 Sanctuary Way, Shreveport, Louisiana 71106-7772.