Black Dragon Resource Companies Inc (BDGR)

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Lanza Forms Black Dragon To Hide His Theft (BDGR)

93. In December 2004, Lanza acquired a defunct OTCBB company and rechristened it Black Dragon. The purpose of Black Dragon was to receive the oil and gas properties stolen from OMDA. Not surprisingly, Lanza initially installed Anderson, his son Mario Lanza, Michael and Barry McFarland as directors.
94. Lanza, Anderson, as former or reputed OMDA directors, and Michael, as OMDA’s former legal counsel, knew or should have known that Black Dragon had been organized to perpetrate a fraud upon OMDA and the investing public. Nevertheless, they conspired to permit Black Dragon to receive assets fraudulently and illegally transferred from OMDA’s wholly-owned subsidiary, Management.
95. For example, upon information and belief, Lanza obtained an assignment of OMDA’s oil and gas assets located in Navarro County, Texas, and Caddo Parish, Louisiana, from Jerome, Jed, and Phil Schlegel (“the Schlegels”), placing them in Black Dragon. Lanza had previously fraudulently and illegally transferred the assets to the Schlegels from OMDA’s wholly-owned subsidiary, Management.
96. After Black Dragon was added as a party to the present suit on April 27, 2006, Michael, then acting as Black Dragon’s president, issued a statement claiming that Black Dragon owned the assets that had been fraudulently and illegally transferred from OMDA’s wholly-owned subsidiary, Management. In his June 6, 2006, statement issued on behalf of Black Dragon, Michael stated:
“[t]he properties related to [OMDA’s Fourth Amended Petition] comprise less than 5% of the current properties owned by Black Dragon.”
97. On or before March 28, 2007, Lanza issued a press release wherein he stated that Black Dragon’s entire board of directors, save for Neeley, had resigned. In their place, Lanza had been nominated as a Black Dragon director and acting president. Although a convicted felon and the recipient of a Consent Judgment rendered against him by the SEC, Lanza, once again, was in control of the business entity purporting to own OMDA’s assets.

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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