Petro America - Kansas Corporation

[1manband]

Do you think they would be interested in the people that accepted gifted shares?

Yes, I do. For a couple of reasons. First, it is clear that most of the gifted shares were later resold and the money either kept by the receiver, or kicked back to Owen et al. That is an unregistered distribution, and that is illegal. Owen and Teresa claimed the shares were "gifted" and then the money "donated" back to Petro in order to get around SEC limits on resale of share. Didn't work. I doubt that Teresa was the only individual to receive gifted shares that were later resold.

Also, from the text of the calls and Owen's claims, many of the shares were issued to people providing "services" to the Company. Those are also likely to be illegal distributions. I am sure the Feds are working to determine what "services" were provided for these shares. If I recall correctly, Owen had praised individuals in the calls for "blogging" on behalf of Petro, which probably includes message board postings. To receive compensation from the company (or related individuals) for posting or blogging without disclosing that fact is a Federal offense - one the government takes very seriously. In many of these fraud cases, the government ends up charging and convicting people for illegal message board postings, so I am sure they will be investigating the recipients of the "gifted" shares for such illegal activity with Petro as well.