Fraud and Scam News

Investigation reveal that Carl Royse, of Fairfield, Ill and his daughter eanette Riley, of Olney, Ill.,
was engaged in conspiracy which attracts interstate fraud business activity and selling fake securities.
Both father and daughter from Illinois were convicted ,for fraud interstate transactions and the sale of unregistered securities, according to A. Courtney Cox, U.S. Attorney for the Southern District of Illinois.

They attracted investors by claiming to have discovered new methods of extracting oil and gas resources. From July 2003 to June 2007, the company sold off investments in the company to people all over the country.

But Royse and Riley operated a Ponzi scheme, using new investor funds to pay off old investors, prosecutors said. The two also failed to disclose to investors that their companies had a history of being the subject of regulatory actions, including from the Securities and Exchange Commission.

Hughes Energy is now under the control of a special court-appointed master.
Carl Royse, now face five years imprisonment, and his daughter, Jeanette Riley was sentenced to 18 months imprisonment. And fine ,amounting $4.3 million.

Source : bizjournals.com

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February 24th, 2009 | Category: Ponzi Scams | Subscribe to comments | Leave a comment | Trackback URL