Petro America - Kansas Corporation

[flaflyersfan]

9 down; 4 to go: Ninth defendant pleads guilty in Petro America case
BY MARK DAVIS
The Kansas City Star

Ninth defendant pleads guilty in Petro America case.

A ninth defendant has pleaded guilty to federal charges in the Petro America Corp. scheme that prosecutors said took in $7.2 million from thousands of investors in the United States and Canada.

Clarence D. Moore, an Atlanta resident who falsely claimed to be a certified public accountant, pleaded guilty today to charges of conspiracy to commit securities fraud and wire fraud.

Prosecutors say he was the individual who put the $284 billion value on the Kansas City-based company that helped lure investors to its stock.

Federal tax returns he signed showed the company’s assets were worth $150,000 in 2007 but ballooned to the $284 billion total in 2010, according to the 20-page plea agreement.

A letter that Moore, 65, signed vouched for the company’s worth though he made his valuation “over the phone and without examining any documents or conducting any due diligence,” federal prosecutors said. He also put his signature to falsified records showing Petro America’s holdings, false federal tax returns and investor “lulling letters,” according to prosecutors.

Moore’s efforts and false credentials added validity to Petro America’s claims it owned several gold mines, oil and multiple operating companies. Prosecutors said the company had none of those assets and no employees other than its chief executive officer and founder, Isreal Owen Hawkins Jr.

Moore faces up to five years in prison without parole, a fine of up to $250,000, and a possible order to make restitution.

Hawkins and four other defendants face various federal charges. The trial date, most recently set for later this month, has been continued. A new date has not been set.

Others who have pleaded guilty in the conspiracy were Curtis White, 56, of Independence; Charles Hooker, 50, and Teresa Hill, 56, both of Kansas City; the Rev. Edward D. Halliburton, 58, of Kansas City, Kan.; Allen Collins, 56, of Raymore; Joseph Harrell, 50, of Waco, Texas; Brian Langenbach, 43, of Globe, Ariz.; and Russell Hopkins, 48, of Tuscaloosa, Ala.

Assistant U.S. attorneys Daniel M. Nelson and Kathleen D. Mahoney are prosecuting the case. It is based on investigations by the Internal Revenue Services’ criminal investigation unit, the U.S. Postal Inspection Service and the Office of the Missouri Securities Commissioner.

To reach Mark Davis, call 816-234-4372 or send email to [e-mail]

Posted on Tue, Oct. 09, 2012 02:56 PM


http://www.kansascity.com/2012/10/09/3859387/ninth-defendant-pleads-guilty.html

Good luck.