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Replies to post #83710 on Treaty Energy Corp. (fka TECO)
10/20/14 9:08 PM
In the lawsuit, New Orleans resident George Demmas claims that Gwyn -- a childhood friend -- convinced him in May 2012 to invest $65,000 in a "fictional undivided interest in an oil well" on promises that he would earn $700,000 over 10 years in return.
That sale agreement was made through Rampant Leon Financial Corp. and signed by Reid, according to the lawsuit.
At Gwyn's urging, Demmas also decided to buy more than 810,000 shares in Treaty Energy for a total of $15,000 with an agreement that Demmas had to hold onto the shares for one year before selling them on the market, according to the lawsuit.
The lawsuit claims Gwyn "knowingly misrepresented material facts to and omitted material facts from" Demmas in both investments.
"In addition, Gwyn made continuing misrepresentations about the investments to induce plaintiff to hold the investments for a longer period of time than he otherwise would have and to delay plaintiff's actions in recovering or mitigating his losses," the lawsuit says.
Rather than the promised $3,000 or $4,000 per month, the lawsuit says, Demmas has received only a total of $700 on the oil well investment.
At one point, when Demmas complained about a lack of payments, Gwyn told him "that a supposed unnamed Russian investor had invested about $20 million in the investment and that Rampant needed to pay him back first before any of the other investors," the lawsuit says.
Meanwhile, Demmas' shares in Treaty Energy did not increase as Gwyn had promised, the lawsuit says, and Demmas couldn't find a brokerage firm willing to sell the shares after the one-year holding period.
Treaty Energy was trading Thursday at .0036 cents per share with a 52-week high of 4 cents per share.
AI
