Petro America - Kansas Corporation

[Old Hillbilly]

More charges for Petro America founder, others

The net widened in the Petro America Corp. case today as federal prosecutors brought additional criminal charges against the company's founder and three alleged insiders.

Indictments in the alleged multimillion-dollar stock scam were brought down against company CEO Isreal Owen Hawkins Jr., Teresa Brown, Johnny Heurung and Clarence D. Moore.

All four were charged with conspiracy. The U.S. Attorney's office alleged the group obtained money through the fraudulent sale of Petro America stock, made fraudulent misrepresentations, and concealed their own enrichment through the scheme.

The government contends Hawkins and his co-horts perpetrated a $7.2 million securities fraud by claiming the company owned gold mines valued at $284 billion.

Hawkins, of Kansas City, Kan., was charged with two felonies last month, securities fraud and "aggravated currency structuring," which involves hiding big cash withdrawals from regulators.

In addition to the conspiracy charge, Hawkins also was charged Monday with money laundering and wire fraud.

Hawkins is expected to make an initial appearance before a federal judge this afternoon.

Brown, of Bandera, Texas, was also charged with securities fraud and wire fraud. The government contends she received more than $3 million from Petro America investors through accounts she controlled.

Heurung was also charged with wire fraud. A Minnesota resident, Heurung was alleged to have held regular conference calls promising investors that they would realize substantial returns on their shares.

Moore was charged with the single conspiracy count.

A group of Petro America shareholders are expected to gather this afternoon in support of Hawkins.
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