Royalite Petroleum Co., Inc. (RYPE)

[nodummy]

RYPE caught my attention today so I started to do some digging.


Royalite Petroleum Co., Inc. (RYPE) was an SEC reporting company through March of 2009 then they stopped doing SEC filings over the past 2 1/2 years.

Today at 2:56 pm RYPE filed a Form 15 announcing that it was going dark.

The person that signed the Form 15 was Norris R. Harris who has been the CEO of RYPE since Royallite Petroleum Co., Inc acquired May Petroleum, Inc's assets in April of 2008.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=5850699

Apparently a company going dark and choosing to hide material information from its shareholders is good news. Starting at 2:56 pm the stock shot up in price. The truth behind RYPE and Norris Harris might make people think twice about owning RYPE stock.




What is the real story about RYPE and Norris Harris?

RYPE hasn't filed its last 3 annual reports with the Nevada SOS and is now a revoked business entity. The Resident Agent for the entity resigned in August of 2010.

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=0nUweR6L4qJ%252fNTsGKOATDQ%253d%253d&nt7=0


OTC has this warning slapped on the RYPE company information page:





Something is very wrong about Norris Harris' name showing up on the Form 15 today.


I decided to investigate further and found some very interesting information:


It appears that Norris Harris whose name appears on the Form 15 filed today for RYPE ran into some pretty serious legal issues in the past which culminated April 28, 2008 with a new court ruling against him. This court ruling probably explains why RYPE stopped doing any filings.

Prior to becoming the CEO of RYPE, Norris Harris was the president of King Resources Inc (KING).

On May 7, 2008 Norris Harris was booted out of office because of a past due court ruling against him.


The court ruling required Norris Harris to return the 50,000,000 shares of RYPE stock he had received for the purchase of May Petroleum, Inc by that company.

All the information can be found in this 8K with an attached court judgment:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=5986194


Radler Enterprises, Inc. successfully obtained a judgment against the Company in the amount of $290,000.00 in the District Court of Travis County, Texas on July 23, 2002. That judgment had accrued interest in the amount of $162,082.20 as of February 29, 2008. On April, 28, 2008 the Court entered an Order Granting Plaintiff’s application for Turnover Relief (Exhibit 1) compelling King Resources to turnover assets sufficient to satisfy the judgment.

As a result, on May 12, 2008 King Resources, Inc. (the “Company”) entered into an agreement whereby Norris Harris agreed to assume substantially all of the then outstanding known liabilities of the Company.

In order to prevent the attachment and seizure of the Seismic Data the Company, Mr. Harris, and Radler entered into a Rule 11 Agreement on May 28, 2008. In pertinent part that agreement provided that Mr. Harris would pay to Radler $162,500.00 on or before May 30, 2008 and would make another payment of 162,500.00 on or before July 8, 2008.

On May 6, 2008 Joseph Meuse was appointed to the board of directors as Director, and President of King Recourses, Inc.


Read N through P of the following section of the court document:








Joseph Meuse ended up selling the KING shell and it eventually ended up in the possession of Mina_ar Group

http://www.otcmarkets.com/financialReportViewer?symbol=KING&id=41475




That court judgment is probably the reason why Norris Harris stopped doing filings for RYPE and the shell went dead including the Nevada business entity.


In the last 10Q filed by RYPE and signed by Norris Harris for the period ending January 30, 2009 Norris Harris was fraudulently claiming that property still

DEPOSIT ON UNPROVEN OIL AND GAS PROPERTIES – RELATED PARTY (Continued)

a) On April 2, 2008, the Company issued 50,000,000 common shares and advanced $340,000 to May Petroleum Inc. (“May”) pursuant to an oil and gas property agreement whereby the Company would acquire May Petroleum, Inc’s interest in an oil and gas prospect in Matagorda County, Texas. The fair value of the stock issuance was $12,000,000. As at April 30, 2008 title to the interest in the property had not been transferred to the Company. Transfer of title was completed on June 2, 2008.

As a result of the share issuance, May Petroleum Inc. became the Company’s majority shareholder, and the President of May Petroleum was appointed as an officer and director of the Company.

The Company also issued 1,000,000 common shares as finders fees in relation to the above transaction. The fair value of the stock issuance was $360,000.

b) During the period ended January 31, 2009, the Company advanced $215,000 to May Petroleum Inc. pursuant to an oil and gas property agreement whereby the Company will acquire a 100% working interest in 895 acres of an oil and gas prospect in Matagorda County, Texas.

This wasn't the first time that Norris Harris got busted.

Back in 2006 Norris Harris got busted by the state of Alabama for selling interest in a company known as Gulfport Oil & Gas Inc.

http://asc.state.al.us/Orders/2006/CD-2006-0006.pdf

An order related to this case was entered by the state of Alabama against Norris Harris earlier this year

www.asc.state.al.us/Orders/2011/OB-2011-0010.PDF


Back in 2006 Norris Harris got busted by the state of Tennessee for his involvement in selling interest in a company known as Westfort Energy Ltd

http://www.tn.gov/commerce/securities/documents/WestfortEnergy03272006.pdf



I have a feeling if I keep digging I'll find many more red flags surrounding Norris Harris.


Because of all the information in this post there is something seriously wrong with the Form 15 that was filed today.