A sixth defendant has pleaded guilty to a federal charge in the sale of $7.2 million of stock in Petro America Corp.
Charles Hooker, a 50-year-old Kansas City minister, pleaded guilty Monday to conspiracy to commit securities fraud and wire fraud, according to federal prosecutors. He previously pleaded not guilty to that charge.
He maintained his not guilty plea to a charge of money laundering, and prosecutors expect it to be dropped at sentencing.
The indictment cites two instances in which Hooker sold shares of Petro America, a Kansas City company that claimed to own assets worth $284 billion, most notably in gold mines and oil. It said Hooker failed to tell the buyers about risks he knew about with an investment in Petro, including a cease-and-desist order that Missouri securities regulators had issued against the company.
Prosecutors said Monday that Hooker had been given millions of shares of Petro America and sold them, spending the cash or keeping it at his house rather than in a bank account.
They have described a scheme that spread Petro shares to investors throughout the United States and in Canada, often through churches.
Hooker faces up to five years in federal prison without parole, a fine of up to $250,000 and an order of restitution.
The plea comes two weeks after a trial for Hooker and eight other defendants was moved to Oct. 22. His sentencing date has been set for Nov. 13.
To reach Mark Davis, call 816-234-4372 or send email to mdavis@kcstar.com.
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