Tuesday, December 29, 2009

Kelly & Carrie Rogers Lower Sale Price of Home

Kelly G Rogers and Carrie S Rogers have lowed the selling price of their home at 8 Riva Ridge in Frisco, Texas. The new selling price is now $2,999,000, reduced from $3,200,000. The listing agent is the "Jan Richey Team".

According to Zillo, this 10,675 square foot home at 8 Riva Ridge has a value range of between $534,750-$727,260, with a current value of $713,000...which seems very low. In comparison, the home at 7 Riva Ridge is a 12,081 square foot home that's been on Zillo for 340 days (which means it's been overpriced and everyone knows it) is valued between $1,168,805 to $1,509,090. It has a current Zillo value of $1,479,500 and is listed at $2,499,900. So it appears in the midst of this  economic downturn, the Rogers are in no hurry to sell this home at a listing price of $2,999,000.

Interestingly, this home has been at the epicenter of the problems created for Kelly and Carrie Rogers. You could call it the "Contributing Factor". For example, in the "Thompson " lawsuit, investors claim; ...although it is undisputed that the $180,000 received from the operator was the property of the company, Rogers testified that he "borrowed" the $180,000 for his personal use. According to Rogers, the $180,000 was used for home improvement. To date, Rogers has provided no promissory note or other evidence that he "borrowed" the money. Further, Rogers has so far repaid none of the money.

And in the State of Texas v Kelly Rogers’s indictment, the State identified transfers from the Lionheart Energy LLC checking account; specific monetary transactions described in the indictment for misapplication of fiduciary property as follows;

Check #992 to Pool Environments on 3/11/2005 = $26,661.00
• Check #998 to Pool Environments on 3/29/2005 = $30,000.00

The Rogers' make the claim that the inability to refinance the $1,200,000 construction loan that matured in February of 2009 resulted in the bankruptcy filing of Kelly G Rogers on July 27th of 2009. However, apparently it didn't wipe out Carrie S Rogers because she was not included in the bankruptcy filing. Yet in the papers filed on 12/4/2009, it states; Unfortunately, the cost of the home exeeded $1,800,000, wiped out all the Rogers' available cash and life savings, caused even more indebtedness, and the home is still not finished. It did say Rogers', didn't it?

In the end, it boiled down to the "Big Dream" home that finally sunk the Amway Dream Machine.

Wednesday, December 9, 2009

Falcon Ten Energy, LLC and Kelly Gordon Rogers

In an earlier story called; "Thomson Lawsuit Creditors sue Kelly Gordon Rogers: Claims Fraud and Embezzlement", 20 investors filed a motion to have the bankruptcy trustee in Kelly G Rogers’s bankruptcy grant a "2004 examination". The purpose was to help the group
determine the whereabouts of $180,000 of business money that was returned to Kelly Rogers’s personal account.

In terms of this investment, Rogers solicited money to fund a supposed entity called "Falcon Energy, LLC-Buck Hamilton Series" but there is no evidence that the entity was ever created. According to the case; it is presently unclear as to the status or nature of the company. Although Rogers solicited investments in a limited liability company, and Rogers had each of the investors execute both a subscription agreement and an LLC agreement, it is unclear if Rogers actually formed the entity. A review of the Nevada Secretary of State records indicates there is no entity named "Falcon Energy, LLC-Buck Hamilton Series". A review of the Texas Secretary of State records likewise establishes there is no entity with that name. As such, it is unclear as to the exact nature of the relationship between the plantiffs and Rogers. Rogers raised $1,400,000 from Plaintiffs, ostensibly for the purchase of membership interests in the company. 

According to the motion; Amazingly, when testifying in response to a 2004 examination request made by this group to the Trustee presiding over Rogers’s bankruptcy, Rogers testified; he did, in fact, "Form a Company" but could not remember where? Rogers further testified that documents reflecting the formation of the company could be found in his prior office space, which has been taken by the landlord. Rogers have since participated in an examination of the records located in Rogers’s prior office space and have yet to locate any records of the company".

Today we came across a Nevada LLC created on March 15th, 2007 called Falcon Ten Energy, LLC. This goes along with the other entity called Falcon Energy, LLC created on March 29th, 2007. We're not sure why these two entities were created but this raises the question; why did Kelly G Rogers create Falcon Ten Energy, LLC and did this corporation receive any of the funds invested in the "Falcon Energy-Buck Hamilton Series" project?

Monday, December 7, 2009

Kelly G Rogers Bankruptcy update IV

Kelly G Rogers filed his Voluntary Chapter 11 case in the United States Bankruptcy Court for the Eastern District of Texas, Sherman Division ("Court") on July 6, 2009, Case No 09-42152. Kelly G Rogers is an individual whose main assets consists of a home, investments and his ability to generate income. Rogers purposes to pay its current indebtedness by restructuring certain indebtedness and by selling his home.

Kelly G Rogers Bankruptcy Original report or Update I, Update II and Update III. and Update IV.

Kelly G Rogers submits this Disclosure Statement pursuant to Section 1125 of the Code to all known Claimants of Kelly Gordon Rogers for the purpose of disclosing that information which the Court has determined is material, important, and necessary for Creditors of Debtor in order to arrive at an intelligent, reasonably informed decision in exercising the right to vote for acceptance or rejection of the Kelly G Rogers Plan of Reorganization dated December 4, 2009 (“Plan”). This Disclosure Statement describes the operations of Kelly Rogers contemplated under the Plan.

Chapter 11 is the principal reorganization chapter of the Code. Pursuant to Chapter 11, Kelly G Rogers is authorized to reorganize its business for its own benefit and that of the creditors and equity interest holders. Formulation of a Plan is the principal purpose of a Chapter 11 reorganization case. A Plan sets forth the means for satisfying claims against and interests in Kelly Rogers. After a Plan has been filed, it must be accepted by holders of claims against, or interests in, Kelly G Rogers. Section 1125 of the Code requires full disclosure before solicitation of acceptances of a Plan. This Disclosure Statement is presented to Claimants to satisfy the requirements of Section 1125 of the Code.

Acceptance of the Plan by the Creditors and Equity Interest Holders is important. In order for the Plan to be accepted by each class of claims, the creditors that hold at least two thirds (2/3) in amount and more than one-half (½) in number of the allowed claims actually voting on the Plan in such class must vote for the Plan and the equity interest holders that hold at least two-thirds (2/3) in amount of the allowed interests actually voting on the Plan in such class must vote for the Plan. Chapter 11 of the Code does not require that each holder of a claim against, or interest in, the Debitor,  vote in favor of the Plan in order for it to be confirmed by the Court. The Plan, however, must be accepted by: (i) at least the holder of one (1) class of claims by a majority in number and two-thirds (2/3) in amount of those claims of such class actually voting; or (ii) at least the holders of one (1) class of allowed interests by two-thirds (2/3) in amount of the allowed interests of such class actually voting.

History and Background as told by Rogers

The Chapter 11 Bankruptcy filing of Kelly Rogers was a direct result of his inability to obtain a mortgage for the refinance of a Bank of Texas construction loan that matured on Febuary 1, 2009.

On February 1, 2008 Kelly Rogers obtained a $1,200,000 loan for the construction and renovation of his homestead. The loan was to mature in one year. Rogers’ Builder, Mike Brown of Angel Properties, LLC represented to Rogers that the cost of the home construction and renovation would be $1,200,000, and that it could be completed in one year.

Unfortunately, the cost of the home exceeded $1,800,000, wiped out all of Rogers’ available cash and life savings, caused even more indebtedness, and the home is still not finished. Angel Properties filed a lien against the home despite having abandoned the project, breached its contract, and misappropriated insurance funds due to Rogers. When the Bank of Texas Construction loan matured the bank extended the maturity date, hoping that Rogers would obtain a mortgage. However, when Angel Properties filed a lien against Rogers’ home, no bank would refinance, and Angel Properties refused to release, or even reduce, its’ lien until. Then the Bank of Texas posted the property for a foreclosure sale on July 7, 2009.

Beginning in July, 2006 Mr. Rogers had a falling out with his business partner, Richard Weyand. Rogers believed Weyand had been stealing money from the companies in which they were partners, without Rogers’ knowledge. On a day in July, Weyand coordinated a lock out of Mr. Rogers from his office, and Debtor asserts began a campaign to disparage him to all of the company’s investors, saying that he had embezzled funds. Kelly G Rogers would show that he did not embezzle any funds. Kelly Gordon Rogers believes one of Mr. Weyand’s attorneys, Larry Boyd convinced the District Attorney to indict Mr. Rogers almost five years after the complained of activities. The crush of these criminal allegations has severely hampered Mr. Roger’s ability to obtain work.

At the time of the lock out, Mr. Rogers lost a significant portion of his income. Unfortunately, he had already begun the teardown phase of his home remodeling project, and could not stop the building without suffering the entire loss of the rest of the home. Because he could no longer afford to build the home out of cash flow, he obtained the $1,200,000 loan from Bank of Texas.

An arbitration proceeding ensued between Weyand and Debtor, the cost for these legal proceedings exceeded $120,000 in legal fees, of which Mr. Rogers paid over $50,000. Mr. Rogers asserts there was no evidence presented at the arbitration that he had committed any actual fraud, or embezzled any funds. Rather, the evidence clearly he asserts demonstrated that he paid into the companies over $800,000 of his own money, in excess of the commissions he received for raising the companies start up capital. However, there was some evidence that he participated in handing out the Private Placement Memorandum, which turned out to have incorrect facts stated in it. It was shown that he did not prepare the PPM, nor did he have any knowledge that any of the facts were not completely accurate. All of the Plaintiffs testified that they relied upon Richard Weyand for the information, and they all knew that Mr. Rogers was not the source of the PPM facts. However, the arbitration resulting a finding against the Kelly G Rogers for approximately $715,000 and against Mr. Weyand for more than $14,000,000.

After July, 2006 he obtained employment at Noble Royalties, Inc. as Senior Vice President of Acquisitions, and made approximately $200,000 per year in Salary and benefits. During the time of Rogers’ employment at Noble he also participated as a working interest owner in various oil and gas wells through his company Falcon Energy, LLC. All of the wells that he invested in, and solicited other people to invest with him, turned into dry holes, except the Good 15-1 which was an asset of Falcon Energy, LLC – Buck Hamilton Series.

(Last, Kelly G Rogers makes a bunch of assertions about the Level Par Ponzi Scheme, claiming he was not at fault. However) ...the SEC filed a complaint against him, which he had to settle in order to avoid additional attorneys fees of over $250,000. He had already incurred over $60,000 of attorneys fees, of which he could only pay approximately $35,000. (Kelly G Rogers signed a final judgment with the SEC that states in Case No: 4:07cv246; number 12 on page 5 and 6; Defendant agrees; (i) not to take any action or to make or permit to be made any public statement denying, directly or indirectly, any allegation in the coplaint or creating the impression that the complaint is without factual basis. The statement on page 6 and 7 of this disclosure seem to directly violate the "Agreed Final Judgment" signed by Kelly Rogers).

Post-Petition Operations

Kelly Rogers originally filed this proceeding pro se. After attempting to navigate through the bankruptcy process, the Kelly G Rogers sought and obtained court approval to hire counsel. (Mr. Rogers asked for and received $15,000 to retain a Lawyer. After racking up over $120,000 in law fees and not paying them, I'm sure the only way this current lawyer would take the case is with a retainer paid "Up Front". Also, Kelly Rogers claims on multiple websites to be a lawyer specializing in Bankruptcy. He also has a company called "Takedown Debt Settlement"). Kelly Rogers has received three lawsuits objecting to his obtaining a discharge. Kelly Rogers has also had a motion to dismiss or convert the case to a Chapter 7 proceeding. The Debtor and his counsel have worked rapidly to evaluate Kelly Rogers ability to restructure his indebtedness and repay his creditors.

Lawsuit Creditors

Since the filing of the Kelly Rogers bankruptcy, Kelly G Rogers has had three adversary proceedings commenced against him. Kelly Rogers has agreed to extend the time for another creditor to determine if they wish to proceed.

The Bill Thompson, CR 591, LLC, Darryl J. Tyson, Wayne Johnson, Nick Digiuseppe, Tom Matter, William Noble, Lang Reid, Larry Boerder, Dr. Matt Brown, Glenn Walser, Jarry Kaul, Milly MacDonald, Stuart Reynolds, Jr., James E. Evans, Jr., Harris Block, Territories Unlimited, LLc, Fred Brodsky, Roy S. Washburn, Bill Grant and Michael A. Boch Creditors (“Thomson Lawsuit Creditors”) have filed a lawsuit in the Bankruptcy Court asserting that claims that they are entitled to a constructive trust on the Debtor’s homestead in the amount of $180,000 as well as claims under 11 U.S.C. § 523(a)(2) and (4). The Debtor has denied the allegations.

The Rio Grande Coal Mine LLC dba Mexicaol, LLC, Tom Haas, Christian Litscher, Eric Wade, Kent Loehrke, Raul Sanchez and Peggy Wade (“Rio Grande Lawsuit Creditors”) have asserted claims against the Debtor under 11 U.S.C. § 523(a)(2)and (4) for an undetermined amount arising from a Ponzi run by TNT Office Supply and Travis Correll. The Debtor has denied the allegations.

The DK Joint Venture 1, Dk Joint Venture 2, Vandali LLP, Parlai LLLP and RTB Holdings, Ltd., (“DK Lawsuit Creditors”) assert claims under 11 U.S.C. § 523(a)(2) and (4) arising from an arbitration award. Debtor denies the allegations.

The Steven & Robin Perry Trust, the Hackett Family Trust, the Tendler Family Trust and the J&T Bonutto Revocable Trust (“Trust Lawsuit Creditors”) have not filed a lawsuit in the Bankruptcy against the debtor however, they have requested additional time to do so. The Debtor does not know the specific allegation to be asserted by the Trust Lawsuit Creditors however the Motion on file with the Court asserts that claims under 11 U.S.C. § 523 (a) (2) (4) and (6) might be forthcoming.

Each of these entities will be referenced to as the “Lawsuit Creditors”. The Lawsuit Creditors shall have the option of continuing their litigation against the Debtor, or sharing in the Unsecured Creditors Pool. The Thompson Lawsuit Creditors shall have the option of participating as a class 3 or class 6 creditor, or continuing its lawsuit. In the event the lawsuit creditors desire to continue their litigation, the Debtor shall vigorously defend the lawsuits. Any successful lawsuit creditor shall not be effected by the Plan, and shall be allowed to collect any non-discharged debt from any non estate property. Any lawsuit creditor who elects to participate in the Plan shall agree to dismissal of the pending adversary proceeding or agree not to file suit.

We encourage the creditors to demand Chapter 7 liquidation and force the Riva Ridge home out of homestead and liquidated. This home is the “Crown Jewel” for Kelly Rogers and Carrie Sewell Rogers and would be appropriate payback to all who participation in Kelly G Rogers investment Schemes and were wiped out.

Thursday, December 3, 2009

Kelly G Rogers Indictment Update I

To review; Kelly G Rogers of Frisco Texas was indicted by a Collin County Texas Grand jury on July 30th 2009, case number 380-81600-09.. According to the County Clerks site, the offense took place on March 1st, 2005 and is a FELONY 1 charge. The charges include 26990034 Misapp Fiduc/Finan Prop >=$200,000. An arrest warrant was issued, and then executed on August 14th, 2009. Rogers was booked, his mug shot taken and he was incarcerated until a $50,000 bond was posted and he was released.

According to the Clerk’s site, an announcement was scheduled for today, December 3, 2009. However, we learned today that the DA’s office will let that deadline pass, a “131 Passed” and will reschedule the announcement to January 15th, 2009. More time was needed for Kelly Gordon Rogers to get his ducks in a row. Rogers has requested a “Jury Trial” and a trial date should be announced at that time.

Occurring simultaneously to the Indictment, Kelly G Rogers has filed Chapter 11 bankruptcy. A hearing was held on Friday where creditors, who participated in a variety of Kelly G Rogers’s investment schemes, were present. The U.S Trustee is considering a Motion to Dismiss or Convert, or for Alternative Relief. Kelly G Rogers has recently obtained counsel and has filed certain documents in the Case. Counsel for Kelly Rogers represents that a Plan and Disclosure Statement will be filed shortly.

The United States Trustee accordingly requests that the Motion to Dismiss be continued until January 11, 2010 at 2 p.m. Stand by for some additional fireworks as the Trustee considers the plan and “Alternate Relief”. From U.S. Courts.Gov; "Delays in formulating, filing, and obtaining confirmation of a plan often prompt creditors to file motions for relief from stay, to convert the case to chapter 7, or to dismiss the case altogether". Imagine if the U.S. Trustee orders a Chapter 7 liquidation of Kelly G Rogers possessions?

And if a liquidation was so ordered, what would be the actual "Net Worth" of Kelly G Rogers to liquidate? So far; we've seen his July 17th, 2006 balance sheet submitted to banks to "secure lines of credit" for $29,200,400. However, only three years later on July 13th, 2009, Rogers submits his "Summary of Schedules" showing a Negative networth of ($3,184,819). The challenge will be to sort through and seperate facts from fiction to discover the actual number.

The fun is just beginning.

Wednesday, December 2, 2009

Kelly G Rogers Bankruptcy Update III

A hearing took place on November 20th, 2009 in the bankruptcy proceedings of Kelly Gordon Rogers, Case No. 09-42154. The process involves over 70 creditors who are owed over $4.6 million by Kelly G Rogers. The hearing took place at the United States Department of Justice, Office of the United States Trustee, 300 Plaza Tower, 110 N. College Tyler, Texas 75702 (903) 590-1450.

While Kelly G Rogers has proclaimed himself to be a bankruptcy Lawyer and debt specialist (see Takedown Debt Settlement), he in fact requested, and was granted, the allocation of $15,000 from the Trustee to hire a bankruptcy lawyer to represent him. Having previously stiffed the law firm of Scheef & Stone LLP for $77,934 and Fish & Richardson PC out of $28,264 (see list of unsecured creditors), I’m sure it was cash up front on this deal.

This bankruptcy proceeding basically boils down to this; Kelly and Carrie Sewell Rogers trying to have their debt dismissed while the creditors attempt to hold the Rogers accountable to pay back the debts they incurred. Many of these debts were incurred either by the Rogers obsession to build a 10,000 square foot addition on their Frisco home or costs incurred via the lawsuits and judgments against Rogers as a result of his financial schemes.

A motion was presented to have the hearing continued to January 11, 2010 at 2:00 PM. However, new documents were submitted by Kelly G Rogers outlining his financial situation (see schedule B, Schedule C, Schedule I and Schedule J). We’ve done a quick summary for your review. A few key observations;

1. Stated monthly income dropped from $55,509 to $26,000 or $29,509 drop.

2. Stated monthly expensed dropped from $31,438 to $23,576 or $7,862 drop.

3. Net Income dropped from $24,071 to $2,424 or a drop of $21,647.

4. Total assets dropped from $423,175 to $202,700 or $220,475 less in assets.

5. New asset disclosure of $202,700 falls short compared to the 2007 balance sheet of $693,500. A drop of $507,800!

6. Furs & Jewelry of $6,000 is laughable considering all the reports of the Rogers in St. Thomas purchasing Jewelry.

7. Car disclosures jumped from $8,600 to $51,000. Missed by a little.

So the battle is on and the creditors are formidable and have significant money at steak. Keep an eye on Falcon-Buck Hamilton Series group who invested $1,400,000 in this project. This group seems to be leading the way to not allow these debts to be released but rather, forcing Rogers into a possible liquidation or the judge allowing other actions. . Let’s see what happens on January 11th of 2010.

Don’t forget to tune in on December 3rd for the announcement by the Collin County DA’s office concerning a Jury trial requested by Kelly G Rogers. This is a result of the indictment handed down against Lawyer Kelly Gordon Rogers in July of 2009.

Wednesday, November 25, 2009

Kelly G Rogers and Takedown Debt Settlement

Kelly Gordon Rogers has started a new company called; "Takedown Debt Settlement". This information is recorded with Stacy Kemp, County Clerk of Collin County. We've enclosed two documents to validate the information (simply click on the photo's to enlarge). Kelly G Rogers registered the information with the State on August 14th, 2009. On July 21st, 2009 Kelly Gordon Rogers filed the paperwork to record Takedown,LLC with the Texas Secretary of States office.

According to the website, "Takedown offers an aggressive debt relief option for people who have found themselves in a financial hardship and want to avoid filing bankruptcy. This program only works for people who understand there are very few options left, and are willing to make a commitment to the program. We will work with you to will help determine if debt settlement is a viable option for you. After reviewing your financial situation, analyzing the debts, considering what creditors are involved, we can then formulate a savings time-line and settlement plan, based specifically on your situation".

Kelly G Rogers has co-opted Curt Sanders as a Partner in Takedown Debt Settlement. This information has been acquired via Linkedin. To see the Linkedin profile, click here. So the obvious questions becomes;
Does Curt Sanders know about Kelly Gordon Rogers background?

In review, Kelly G Rogers was indicted by the State of Texas on July 30th, 2009. See Kelly Gordon Rogers Indicted. Kelly Gordon Rogers has requested a jury trial and an annoucement is scheduled for December 3rd, 2009. Click on the Collin County link and enter Rogers, Kelly to look up case 380-81600-09.

Additionally, Kelly G Rogers filed bankruptcy on July 27th, 2009. See Kelly G Rogers of Texas files bankruptcy. Additionally, SIX various groups have filed lawsuits against Kelly Rogers for a variety of investment schemes gone bad. See Investors sue Kelly Gordon Rogers; claims fraud and embezzlement. Additionally, the SEC sued Kelly G Rogers for his involvement in a illegal ponzi scheme. See Kelly G Rogers sued by SEC in 2007.

Recently, after having his law license suspended on 2 different occasions, Kelly Gordon Rogers has been reinstated by the State Bar of Texas. We have contacted the Bar to question this reinstatement.

This story is provided as a warning to anyone who may encounter Kelly G Rogers and his investment schemes to beware of his history. It's ugly, it's extensive and it has financially ruined many.

Thursday, November 19, 2009

Kelly G Rogers sued by Wheel Chair companies; Invacare and Bruno

Indicted Attorney, Kelly G Rogers, was sued by two Power Wheel Chair companies in 2005. The suits name Kelly G Rogers; DBA Kabec LLC and Kabec Medical Equipment. Kabac stands for Kelly-Andrea-Ben-Ericka-Carrie Sewell Rogers. 

Invacare Corporation and Bruno Independant Living Aids are leading manufacturers of Power Wheelchairs who provide chairs to the most disabled Medicare patents among us. Kelly G Rogers began this medical business to reap the rewards of the huge amounts of reimbursements available from Medicare to those who "Qualify" for a power wheel chair.

Both Invacare and Bruno received judgments totalling $109,959 and $35,472 respectively. These judgments were filed with the State of Texas on May 26th, 2005 on behalf of Invacare and on August 21st, 2006 on behalf of Bruno Independent Living Aids. Apparently, Kelly G Rogers simply forgot to pay these suppliers to the tune of $145,431 from his business operations. I wonder if he ever received Medicare reimbursement for the chairs he took delivery of but never paid?

So the question becomes; did Lawyer Kelly G Rogers ever pay back the $145,431? Yes! We're proud to report that these judgments must have been paid back because a release of Judgment lien was issued on Invacare's behalf on December 31st, 2007 and for Bruno on June 20th, 2007. We've included both the Abstract Judgment for both Invacare Corporation and Bruno, plus the release of judgment lien for both Invacare and Bruno. These are public documents avalable on the Collin County Clerk's website in the "Deeds" section.

But in light of the recent lawsuits in 2008 and 2009, the question now becomes; who's money paid off these liens? Was it the Lion heart investors groups money who won an arbitration award from Kelly Gordon Rogers of over $700,000? Was it the $200,000 the SEC identified that CR Davis transfered to Lawyer Kelly G Rogers personal account? Was it the money Kelly G Rogers removed from the Rio Gande Coal operation and invested in the Travis Correll Ponzi scheme that was paid into his personal account? This group has a pending lawsuit against both Lawyer Kelly Gordon Rogers and Carrie Sewell Rogers claiming fraud and embezzlement. I don't know.

Only a good Attorney will be able to get to the bottom of who's funds were used to payoff these two Power Wheelchair suppliers. One thing is for certain; this will not be the last questionable business operation Lawyer Kelly Gordon Rogers becomes involved within.

Next up on the report; "Takedown Debt Settlement" business started by Lawyer Kelly G Rogers on August 14th, 2009. Another industry that appears to be "HELPING" people but are on the cutting edge of scammers all over America....just like the fruad of the Medicare industry. 

As the State Bar discloses; A lawyer is a representative of clients, an officer of the legal system and a public citizen having special responsibility for the quality of justice. Lawyers, as guardians of the law, play a vital role in the preservation of society. The fulfillment of this role requires an understanding by lawyers of their relationship with and function in our legal system. A consequent obligation of lawyers is to maintain the highest standards of ethical conduct.

Is Kelly Gordon Rogers upholding this State Bar creed? You be the judge.

Monday, November 2, 2009

Kelly G Rogers issues Cross Claim

In response to a lawsuit heard before the American Arbitration Association, the following information is pulled directly from the Cross-Claim issued by Kelly Rogers, Kelly G Rogers, Kelly Gordon Rogers. In case 71-198-Y-00111-07 and 71-198-Y-00112-7, the AAA eventually issued a judgment against Rogers in the amount of $712,623. See “Investor Group files complaint against discharge ability of $712,000 against Kelly Gordon Rogers; Claims Fraud”.

On February 29th, 2008 Rogers claims against Richard Weyand;

1. Indemnity Claim against the Weyand respondents,
2. Contribution Claim against all Weyand respondents
3. Conversion of Personal property claims against Richard Weyand
4. Fraudulent conversion of business interests against Richard Weyand
5. Libel and Slander against Richard Weyand.

The purpose of this story is to report on number 5; the things Kelly G Rogers claimed Weyand said that was libel and slander. It's interesting how time eventually exposes who's telling the truth.

Rogers begins: Since July, 2006 and continuing until as recently as February 15, 2008, Richard Weyand has repeatedly made material, false statements of fact, both written and oral, about Kelly Rogers to numerous third parties, which, at the time they were made, were know by Richard Weyand to be false. Richard Weyand has made the following false statements about Kelly Rogers since July 2006:

That Kelly G Rogers embezzled $2,000,000 from companies controlled by Weyand.
• That Kelly G Rogers was in jail.
• That Kelly G Rogers has been indicted.
• That Kelly G Rogers used embezzled money to remodel his house.
• That Kelly G Rogers has $1,000,000 of stolen money buried in his back yard.
• That Kelly G Rogers has $1,000,000 that he is trying to hide in an investment.
• That Kelly G Rogers is trying to hide $1,000,000 in a restaurant investment.
• That Kelly G Rogers is using $1,000,000 cash to build his house.
• That Kelly G Rogers embezzled money and was stealing from Christian Recile.
• That Kelly G Rogers embezzled $200,000 from Level Par Investments, LLC.
• That Kelly G Rogers habitually lied to investors.
• That Kelly G Rogers committed crimes against the State of Texas.

The above statements are all completely false and Richard Weyand knew that they were false when he made each statement. Upon information and belief, Richard Weyand made each of the above false statements to cause injury and damage to Kelly Rogers. One or more of the statements were made to good friends, neighbors, colleagues, associates, investors and/or acquaintances of Kelly G Rogers including; Jay Allison, Roland Burns, Kimball Norman, Todd Wagner, Fred Swell, Carrie Sewell Rogers, Neil Brown, John Miglautsch, Joel Moore, Tim Wijt, Robbie Gowdey, Roland Hughes and many others. AS a direct and proximate cause of Richard Weyand’s intentional communication of false and misleading statements of material facts to the above personas, and others, Kelly Rogers’s reputation has been severely damaged.

This Corss-Claim was issued on February 29th, 2008. As of November 2nd, 2009 a little bit of time has passed and now it sheds some interesting light on SEVEN of the ELEVEN charges;

That Kelly G Rogers was in jail. Kelly Gordon Rogers was in fact indicted on July 30th, 2009, mug shot taken, briefly jailed and now is out on bond. Rogers has requested a jury trial but was in fact in jail.
That Kelly G Rogers has been indicted: In fact, he was on indiced on July 30th, 2009.
That Kelly G Rogers used embezzled money to remodel his house: In fact, Rogers has been sued by several investor groups for fraud and embezzlement. Most state that money was used to remodel his home. Specifically; Bill Thompson, CR591, LLC et al v. Kelly Gordon Rogers, Rio Grande Coal Mine, Investor group asks judge to not discharge $712,000 claiming fraud.  In one claim, Falcon Energy, LLC-Buck Hamilton Series, investors claim that Rogers took $180,000 and applied it to remodel his home!
That Kelly G Rogers is using $1,000,000 cash to build his house: Rogers did borrow $1,232,000 from the Bank of Texas. Right amount but not cash.
That Kelly G Rogers embezzled money and was stealing from Christian Recile: Rogers has been named in several lawsuits against him for Fraud and Embezzlement.
That Kelly G Rogers embezzled $200,000 from Level Par Investments, LLC: This transaction was documented in Securities and Exchange Commission vs. Global Finance & Investments, Inc Case No; 4:07cv346. Item 55 on page 13 of the SECURITIES AND EXCHANGE COMMISSION, vs. GLOBAL FINANCE & INVESTMENTS, INC.
That Kelly G Rogers habitually lied to investors: I’ll let the investors make comments on that one. In fact, Rogers was informed about the SEC investigation into Level Par during the first week of July, 2006 yet the truth was not told to investors until August of 2006. Is that lying? Read the letter yourself.
That Kelly G Rogers committed crimes against the State of Texas according to the Indictment issued this summer: State of Texas vs. Kelly Rogers/ Case 380-81600-09. What do you think?

Finally, several names have been mentioned “as good friends, neighbors, colleagues, associates, investors and/or acquaintances” which Weyand “cause injury and damage to Kelly G Rogers”. Did anyone except Kelly Rogers cause injury and damage to his own name? In his own words....audio.

The best example is how Rogers has stiffed the very lawyers who wrote up this Cross Claim! He stiffed Scheef & Stone LLP who are listed as a creditor on the bankruptcy filing for $77,934.46. Additionally, Rogers stiffed Fish & Richardson PC for another $28,263.88.

That’s $106,198 dollars worth of damage and illistrates why we created this blog; to protect the public from these financial schemes.

Sunday, November 1, 2009

Kelly G Rogers attempts to sell another scheme

 Another investment scam has been uncovered. We bring this information to the general public as a warning that Kelly G Rogers has learned nothing by the civil and criminal suits he's faced since his the Lionheart Oil and Gas debacle back in 2006. This latest example illustrates perfectly why this website has been established.

According to the Joint Venture Agreement dated March 27th, 2009, the scheme purported to allow Kelly G Rogers to market a "Digital Business Card" and have an exclusive in the MLM and Network Marketing industry. A list of 72 MLM clients are listed in the attached Joint Venture Agreement. The agreement would assign "Potential Commissions and Profits" to the investor in exchange for investment increments of $50.000. According to the JV agreement; "Rogers has acquired the exclusive rights to market the JumpLab Digital Business Card to any and all Multilevel Marketing Organizations listed on Exhibit A. Rogers hereby agrees to assign $250,000 of the potential commissions and profits received from those interests to (name) for every $50,000 contributed to the Joint Venture by (name), up to, but not more than, $150,000 for and assignment of $750,000 of commissions and profits from the sale of JumpLabs cards".

It's all appears to be very slick and Kelly G Rogers-esk but it's simply more of the Lawyers Kelly Gordon Rogers whiffle-dust that has become his trademark. As a review of the facts; Both Carrie Sewell Rogers and Lawyer Kelly G Rogers are being sued by seven investors for the Rio Grande Coal mine operation for fraud and embezzlement, 5 investors are suing the Rogers bankruptcy to keep the court from discharging $712,000 awarded by an arbitration panel, another 20 investors are suing him over the "Falcon Energy-Buck Hamilton Series" oil & gas deal gone bad, the District Attorney has indicted Rogers on July 30th of 2009, the SEC sued and Rogers agreed to an AGREED FINAL JUDGMENT and Rogers filed bankruptcy on July 27th of 2009. In total, Rogers listed 6 separate lawsuits in his bankruptcy filing.

Three interesting observations about this JV Agreement.

  1. First, while Lawyer Kelly G Rogers makes the claim that Kelly G Rogers has "acquired the exclusive rights to market the JumpLab Digital Business Card to ANY AND ALL MULTILEVEL MARKETING ORGANIZATIONS LISTED ON EXHIBIT A, a closer look at Exhibit A shows at least 6 that are "Taken" or the comment "Hmmmm".
  2. Second, this JV Agreement is written on March 27th, 2009. Rogers filed bankruptcy in July 27th of 2009 just days before he was indicted. If an investor had given money to the Rogers Family LP, would they have ended up as an "Unsecured Non-Priority Creditor" on Kelly Rogers bankruptcy filing only 4 months later?
  3. Third, who borrows money to begin a sales organization anyways? Earning commissions is risky at best. Who knows if clients will even purchase your product? Is it priced right, does a need exist? This is the equivalent of loaning someone money to invest in the stock market.
Last. We spoke to a representative from JumpLabs and they said they'd broken off discussions with Lawyer Kelly G Rogers. They stated he should not be representing the company and if we heard he was, they instructed us to call them immediately. So, if the investor had invested in this project and JumpLabs had broken off the agreement, would Kelly G Rogers refund the investors money?

All good reasons to stay away from this financial predator at all costs.

Monday, October 12, 2009

Kelly G Rogers sued by the SEC in 2007

On July 18th, 2007, the Securities and Exchange Commission filed the lawsuit; Securities and Exchange Commission vs. Global Finance & Investments, Inc Case No; 4:07cv346. This lawsuit specifically named Kelly G Rogers as a Plaintiff.

The United States Securities and Exchange Commission (“Commission”) files this Complaint against Defendants Global Finance & Investments, Inc.; Charles R. Davis, William F. Dippolito; Lucre Fund, LLC, JTA Enterprises, Inc.; William H. Clark; Level Par Investments, LLC; Kelly G. Rogers; Sterling Meridian, LLC; Ronald J. Linn; and Glenn Maske.

Kelly G Rogers involvement had been discovered by the SEC while they conducted an investigating into the "Travis Correll" Ponzi Scheme. The SEC shut down this operation in December of 2005. During the SEC research,  they came across a deposit into CR Davis's account in the name of Level Par. This caused the SEC to reach out and investigate Level Par. This contact by the SEC resulted in the following letter being sent out to all 35 Level Par Investors in August of 2006. Seems that Kelly Rogers was an active participated in the Travis Correll Ponzi scheme. In Rio Grande Mining vs. Kelly Rogers and Carrie Rogers, Plaintiffs claim that Rogers embezzled company funds and invested in the Correll scheme, having the profits paid to his personal account.

According to the complaint; Rogers’s fraudulent offering;

In January 2006, Clark told Kelly G Rogers that Clark had invested with Global Finance and was receiving profits from Global Finance’s program. In fact, drawing from the representation in Davis’s December 20, 2005 joint venture amendment, Clark represented to Rogers that he had $100 Million invested in the Global Finance investment program.

In February 2006, after Kelly G Rogers expressed an interest in participating in Global Finance’s program, Clark introduced Rogers to Davis. According to Rogers, Davis offered him a “totally secure” high-yield program involving the purchase and sale of bank debentures that paid monthly returns of up to 25 percent. Davis touted the fact that the funds would be safely deposited in an attorney’s trust account and would not be withdrawn until an actual transaction commenced or instrument was purchased.

In February 2006, Rogers was the managing member of Level Par and its sole contact with Global Finance. Rogers, using Level Par as a pooling vehicle, conducted an offering, and invested the proceeds with Global Finance. Based on Davis’s representations, Rogers prepared Level Par’s offering documents, promising investors monthly returns ranging from 3 to 10 percent. Rogers orally represented to Level Par investors that their principle was not at risk because it remained in an attorney’s trust account. In many cases, Lawyer Kelly G Rogers personally guaranteed funds invested by those in his Networking business, many who were sucked into his deals based on the relationship developed via the “Business”. Rogers also told investors that the funds would be used as collateral to trade in various bank debentures or mortgage backed securities. Rogers told one investor that “the World Bank would have to collapse to lose his investment”. Rogers raised $4.7 Million from approximately 35 investors and wire transferred all of it to Global Finance in February or March of 2006.

Rogers knew that Davis’s claims were fraudulent. First, Rogers was an investor in Correll’sheme, a similar high-yield investment program, which had ceased making promised payments. Also, Rogers was on notice that these investments were scams when he learned of the Commission’s allegations in the Correll civil action in which Robbie Gowdey, Kelly G Rogers’s friend and neighbor, was charged with violation of the federal securities law. To illustrate the friendship, Rogers had been assigned as the trustee to Robbie Gowdey’s family Trust account. Robbie Gowdey passed away on January 8, 2009.

On July 13, 2006, Global Finance notified Level Par that it had terminated their agreement and identified $775,000 in previous payments. When Level Par’s other members received Global Finance’s notification, they realized that Rogers had misappropriated $200,000 belonging to their investors and removed Rogers from Level Par.

Claims Against : Kelly Gordon Rogers

1. Violations of Sections 10(b) of the Exchange Act and Rule 10b-5.

2. Violations of Sections 17(a) of the Securities Act.

3. Violations of Sections 5(a) and 5(c) of the Securities Act.

4. Permanently enjoins Kelly Rogers from future violations of 5(a), 5(c) and 17(a) of the securities act.


On April 9, 2007 agrees to a “Consent of Defendant Kelly G. Rogers”.

1. Defendant Kelly G. Rogers waives services of Summons and the Complaint in this action, enters a general appearance, and admits the Court’s jurisdiction over Defendant and over the subject matter of this action.

2. Without admitting or denying the allegations of the complaint(except as to personal and subject matter jurisdiction, which Defendant admits), Defendant hereby consents to the entry of the Agreed Final Judgment as to Kelly G. Rogers in the form attached hereto and incorporated by reference herein, which, among other things;

• Permanently restrains and enjoins Defendant from violations of Section 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under;

• Orders Defendant to pay disgorgement in the amount of $100,000, plus prejudgment interest thereon in the amount of $3,360; and

• Orders Defendant to pay a civil penalty in the amount of $50,000 under Sections 20(d) of the Securities Act and Sections 21(d) of the Exchange Act.

You can download the “CONSENT OF DEFENDANT KELLY G. ROGERS” by clicking on the link. The question now becomes; did Rogers knowingly violate the terms and conditions set forth by the SEC on April 9th, 2007 when he sold the deal called Falcon Energy, LLC- -Buck Hamilton Series" or any other of these schemes that took place at or around April of 2007?

These and many more questions will be answered in the weeks and months ahead as the lawsuits begin to play out in courts. As of today, Level Par investors are still waiting for the return of their funds. In 2007, the SEC turned over $7.2 Million recovered from the Global Finance scheme and assigned Hays Financial Consulting to handle the trust. Keep in mind; while these investments were made in 2006, the final distribution has still not been made in October of 2009. Many families have been financially devastated by the schemes that were solicited for by Kelly Rogers.

Stay tuned.

Friday, October 9, 2009

Rio Grande Investors Sue Kelly G Rogers & Carrie Sewell Rogers; Claims Fraud and Embezzlement

The Rio Grande Coal Mine group has issued a complaint; To Determine Discharge ability of Debt owed to the investor group. Seven investors filed the complaint to the United States Bankruptcy Court of Eastern Texas on October 1, 2009 against bankrurptcy case No 09-42154. The group is asking the Trustees not to dismiss the debt owed to these investors as a result of an investment solicited by Lawyer Kelly G Rogers. Interestingly, Carrie Sewell Rogers is also named in the complaint. To download complain, click on the link; Rio Grande Coal Mine, LLC dba-Mexicaol.

In the statement of facts, we quote the following information directly from the lawsuit; Kelly G Rogers solicited the Plaintiff's to make an investment in Rio Grande. The solicitation occurred using wire communications in interstate commerce. Kelly G Rogers is not licensed under state or federal law to solicit investments and securities. This is a very interesting statement considering that Lawyer Kelly Gordon Rogers has been sued by the SEC and permanently restrained and enjoins Rogers from a violating variety sections in the Security act of 1933. So it makes one wonder if Lawyer Kelly G Rogers has violated the consent of this final agreement? Read the SEC Consent of Defendant Kelly G Rogers for yourself.

To continue; the solicitation made by Kelly G Rogers is a security as defined under federal law. Kelly G Rogers misrepresented the investment in Rio Grande to the plaintiffs. After receiving the investments funds from the Plaintiffs, Kelly G Rogers misappropriated and otherwise embezzled the investments made in Rio Grande by the Plaintiffs. It goes on; Kelly G Rogers used the Plaintiffs investment funds from Rio Grande bank account to participate personally in a Ponzi scheme associated with TNT Office Supply and Travis Correll. Kelly G Rogers misappropriated and embezzled Rio Grand funds from the Rio Grande bank account in order to personally participate in the Travis Correll Ponzi scheme. The Travis Correll Ponzi scheme paid money back to Kelly G Rogers and Carrie Rogers. Carrie (Sewell) Rogers participated in spending the payments received from the Ponzi scheme and making deposits of the payments from the Ponzi scheme. The payments from the Ponzi scheme were deposited into a joint bank account in the name of Kelly G Rogers and Carrie (Sewell) Rogers. Kelly G Rogers and Carrie Sewell Rogers jointly received substantial sums of money in the payback scheme from the Travis Correll Ponzi scheme. Kelly G Rogers and Carrie Sewell Rogers did not pay the money back to Rio Grande or to Rio Grande's investors, the Plaintiffs.

The Securities and Exchange Commission conducted an investigation of the Travis Correll Ponzi scheme and uncovered wire transfers authorized by Kelly G Rogers transferring money from the Rio Grande bank account in Collin County, Texas to a bank account in the name TNT office-supply. These wire transfers by Kelly G Rogers were not authorized by Plaintiffs and were not a lawful use of the funds and money belonging to Rio Grande. Kelly G Rogers never disclosed to the Plaintiffs that he was using their investment money to participate personally in a Ponzi scheme, and Plaintiffs never authorized Kelly G Rogers to use their money and their investment in Rio Grande to personally participate in the Travis Correll Ponzi scheme.

Kelly G Rogers owed Plaintiffs a fiduciary duty. Kelly G Rogers breached his fiduciary duty. Kelly G Rogers embezzled, converted and misappropriated money and funds invested by Plaintiffs in Rio Grande for his personal benefit and for the benefit of Carrie Sewell Rogers. Carrie Sewell Rogers knowingly spent money from the joint bank account controlled by her and her husband, Kelly G Rogers, which was money deposited from the Travis Correll Ponzi payments. Carrie Sewell Rogers endorsed checks from the Travis Correll Ponzi payments and deposited those checks in a bank account in Collin County, Texas that she had joint control over with her husband, Kelly G Rogers. Kelly G Rogers and Carrie Sewell Rogers engaged in a joint enterprise and civil conspiracy to defraud Plaintiffs of their investment in Rio Grande by taking money from Rio Grande, participating in the Travis Correll Ponzi scheme, and then depositing Ponzi payments from the Travis Correll Ponzi scheme in their joint bank account which both Kelly G Rogers and Carrie Sewell Rogers had access to.

Additionally, Kelly G Rogers and Carrie Sewell Rogers sold equipment belonging to Rio Grande. Kelly G Rogers and Carrie Sewell Rogers retained the proceeds from the sale for their personal benefit and have failed and refused and continue to fail and refuse to pay the proceeds from the sale of that equipment to Plaintiffs. Kelly Gordon Rogers and Carrie Sewell Rogers used the proceeds from the sale of the equipment for their personal benefit. The equipment was owned by Rio Grande and was purchased with investment funds from the Plaintiffs.

The lawsuit summarizes the following counts; ONE-FRAUD: Kelly G Rogers and Carrie S Rogers made the misrepresentations of fact noted above with knowledge of their falsity, with the intent of defraud Plaintiffs, who justifiable relied upon those misrepresentations and were damaged by Rogers’s fraud. TWO-FRAUD WHILE ACTING IN A FIDUCIARY CAPACITY: Kelly Rogers was in a fiduciary relationship with Plaintiffs. Kelly Rogers committed the fraud noted above and made the material misrepresentations of fact with knowledge of their falsity and with the intent to defraud Plaintiffs who justifiably relied upon those misrepresentations and were damaged. THREE-EMBEZZLEMENT: Kelly G Rogers and Carrie Rogers embezzled money from Plaintiffs. FOUR-NONDEBTOR SPOUCE: Carrie Rogers as a non-debtor spouse is a party so that the Court may determine the dischargebility of the debt pursuant to 11USCA 524(b)(2). FIVE-DAMAGES: The damages suffered by Plaintiffs are in excess of the minimum jurisdictional limits of the court. Debtor is also liable for punitive damages in an amount to be determined by the court.

The group is simply asking the court to disallow the automatic stay against the lawsuit that would essentially release Kelly Gordon Rogers and Carrie Sewell Rogers from any responsibility for their actions. More to come as information becomes public.

Thursday, October 8, 2009

DK Lawsuit Creditors file complaint against Kelly Gordon Rogers; Claims Fraud

Another group of investors filed a complaint to the United States Bankruptcy Court for the Eastern District of Texas-Sherman Division. Under Case No 09-42154-BTR-11, 5 entities have appealed to the court to not allow the release of this debt assigned to Lawyer Kelly G Rogers;

DK JV 1 and DK JV 2 for                286,839
Vandalai LLP and Parlai LLLP for     330,811
RTB Holdings, LTD for the amount     94,973

  Total amount identified                     $ 712,623

Following a three week arbitration hearing in May and June of 2008, the arbitration panel issued its award in the Arbitration proceeding dated April 1, 2009. The Award issued damages to these investors as a result of investing in this oil and gas entity. This group was created by several individuals, including Lawyer Kelly G Rogers. The entity was officially issued by the Recorder of Collin County on March 1st, 2005. The paperwork was submitted by Lawyer Kelly G Rogers and is posted below.

The complaint, objecting to the discharge of awards issued against Lawyer Kelly G Rogers, included all but one investment group. That group is KCR Investments, Inc which is short for "Kelly and Carrie Rogers Investments, Inc. This group represented money invested by Carrie Rogers Father, Frederic D. Sewell. Mr. Sewell is one of the founders of Netherland, Sewell & Associates, Inc. According to the site; NSAI was built on the vision and integrity of Clarence Netherland and Fred Sewell. Over 45 years later, our commitment remains the same.

Many of those who invested in these oil and gas offerings will tell you that Rogers often dropped his father-in-laws name as an investor. This was used in the context that he was giving it his stamp of approval, even though it was emphasized that we were not suppose to know this information.

Turning to the documnet, here are the counts; One-Rogers obtained money and/or property from Plaintiffs by false pretenses, by false misrepresentations, and/or by actual fraud. Two-that the debts owed by Rogers are for fraud and/or defalcation while acting in a fiduciary capacity. Finally-the arbitration panel, in the Award, specifically found Rogers liable to Plaintiffs for, inter alia, fraud and breach of fiduciary duty.

If you're keeping score at home, two groups have now asked the court to suspend the release of funds owed to them by Lawyer Kelly G Rogers. One group (Falcon Energy, LLC-Buck Hamilton Series) invested $1,400,000 and is asking the judge to preserve the $180,000 that was embezzled by Lawyer Kelly G Rogers and be assigned as a lien against the Rogers home. You may know that in Texas, your home is protected under the Homested Act. As a result, Lawyer Kelly G Rogers tried to cram as much money into this home in order to preserve his wealth from investors who have sued him. However, the first group is asking the judge to include thier $180,000 that they claim Rogers embezzled, to be applied against the home.

The second group (dicussed here on this page) have asked the judge to disallow the release of $712,623 in debt as part of a $14,341,333 total award issued as a result of the Lionheart oil and gas debacle. To our knowledge, no ruling has been issued to date.

We'll keep an eye on these issues.

Thomson Lawsuit Creditors sue Kelly Gordon Rogers: Claims Fraud and Embezzlement

Kelly Gordon Rogers is named as the defendant in another lawsuit filed on October 2nd, 2009. Bill Thompson, CR591, LLC et al v. Kelly Gordon Rogers, alleges Fraud and Embezzlement against Rogers and was filed in the United States Bankruptcy Court for the Eastern District of Texas, Plano Division. The purpose of this suit is to arrest control of these assets from Debtor and place in the hands of Plaintiffs, who provided all of the funding for the purchase of these assets.

This lawsuit involves 20 of the 22 known members of the Company consisting of approximately 95% of the preferred member’s interest. In 2007, Rogers was searching for investors for this scheme. The stated purpose of this company was to purchase mineral interests and develop oil and gas wells. At the time Rogers solicited the investors, the company owned one producing oil well, and Rogers sought sufficient funds to enable the company to "Turn Key" two gas wells and to begin drilling a third gas well, according to the lawsuit. Based a powerpoint developed by Rogers and other information, the members invested $1,400,000 with self proclaimed Laywer Kelly Gordon Rogers.

The suit claims that Lawyer Kelly G Rogers embezzled company assets while acting as managing members. According to the suit, Rogers declared the first gas well a mechanical failure and had it plugged. The second gas well also purportedly suffered from mechanical failures and was terminated. It is unknown at this time if any work at all was done on these wells or what the funds for these wells were used for. In October, 2008, work on a purported third gas well was stopped and the gas well operators transferred to Rogers the sum of $180,000. These funds were previously paid by the company to the operators to develop a third gas well and the operators' payment to Rogers was a return of the unused portion of the prepaid drilling costs for the third gas well.

It goes on; although it is undisputed that the $180,000 received from the operator was the property of the company, Rogers testified that he "borrowed" the $180,000 for his personal use. According to Rogers, the $180,000 was used for home improvement. To date, Rogers has provided no promissory note or other evidence that he "borrowed" the money. Further, Rogers has so far repaid none of the money.

According to records from the Nevada Secretary of State, Lawyer Kelly G Rogers created an entity named Falcon Energy, LLC on March 29th, 2007. The status of this corporation was "Revoked" as of April 1, 2009. This is not unusual for Lawyer Kelly Gordon Rogers. Rogers has demonstrated a clear pattern of poor standing within organizations since 2002. A check of his law license shows he was suspended (Since this story broke, Kelly G Rogers has updated his law liscence. However, the Texas State Bar is looking into the case) by the Supreme Court of Texas in both 2002 and 2008. And now this entity is officially "Revoked" by the State of Nevada because the Rogers apparently didn't pay the $125.00 fee due to the state.

In terms of this investment, Rogers solicited money to fund a supposed entity called "Falcon Energy, LLC-Buck Hamilton Series" but there is no evidence that the entity was ever created. According to the case; it is presently unclear as to the status or nature of the company. Although Rogers solicited investments in a limited liability company, and Rogers had each of the investors execute both a subscription agreement and an LLC agreement, it is unclear if Rogers actually formed the entity. A review of the Nevada Secretary of State records indicates there is no entity named "Falcon Energy, LLC-Buck Hamilton Series". A review of the Texas Secretary of State records likewise establishes there is no entity with that name. As such, it is unclear as to the exact nature of the relationship between the platiffs and Rogers. Rogers raised $1,400,000 from Plaintiffs, ostensibly for the purchase of membership interests in the company.

Amazingly, when testifying in response to a 2004 examination request made by this group to the Trustee presiding over Rogers’s bankruptcy, Rogers testified; he did, in fact, "Form a Company" but could not remember where? Rogers further testified that documents reflecting the formation of the company could be found in his prior office space, which has been taken by the landlord. Rogers have since participated in an examination of the records located in Rogers’s prior office space and have yet to locate any records of the company. It maybe that the members of the company are simply members of an unincorporated joint stock association, a general partnership, or a trust. In any event, the company has significant assets which are under the direct control of Rogers. The purpose of this suit is to arrest control of these assets from Rogers and place it in the hands of the Plantiff, who provided all of the funding for the purchase of these assets.

To see an actual "Motion for Rule 2004 examination of Kelly Gordon Rogers, click on case number
09-42154-11. This trust invested $420,000 in the "Buck Hamilton Project". Based on the quote listed in the preceeding paragraph, the 2004 Examination request must have been granted since Rogers testified that he did form a company but couldn't remember where. To quote the motion; It is well settled that the scope of examination allowed under Rule 2004 is broader than discovery allowed under Federal Rules of Civil Procedure and may be in teh nature of a "Fishing Expedition". It is well established that the scope of a Rule 2004 examination is extreamely broad and...allowed for the 'purpose of discoverign assets and unearthing frauds' and has been compared to a 'fishing expidition'.

The suit claims the following.

First, Rogers is indebted to the company in the sum of at least $180,000 on a debt for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.

Second, Rogers is indebted to the company in the amount of any company funds used for purposes other than in compliance of the LLC Agreement or the Subscription Agreement for false pretenses, false representations, or actual fraud.

Third, Plaintiffs request the Court declare Rogers home be subject to a constructive trust in favor of the Plaintiffs for the amount of $180,000. The basis of this request is that; (a) Rogers committed actual fraud or has committed constructive fraud through the breach of a preexisting fiduciary or confidential relationship (b) Rogers would be unjustly enriched by retaining the proceeds of the wrong and (c) there is a traceable res upon which to impress the trust.

Fourth, Plaintiffs request the Court to enter an order requiring Rogers to render a forensic audit of all transactions engaged in by Rogers.

In 2006, Kelly Rogers was sued by the SEC for his involvement as a facilitator in a ponzi scheme. The original complaint was filed on July 18th, 2007, Case 4:07cv346. Eventually, Rogers agreed to a final judgment contained in Doc 7-2, signed by Rogers. In the agreement, Rogers agrees to a variety of rules and restraints.

The ramifications of the; Bill Thompson, CR591, LLC et al v. Kelly Gordon Rogers are very important since it expose specifics of how Rogers sold securities to these investors. These details will be instrumental in answering the question; did Rogers violate his settlement with the SEC? Further, will any of these allegations assist the Collin County DA win a conviction on their indictment of Kelly Rogers? And did Rogers violate any FINRA rules when raising these funds for Falcon Energy, LLC-Buck Hamilton Series deal? For those who don't know, FINRA exists to for investor protections. They work hand in hand with the SEC. On you review their website, the headline reads; "Investor Protection, Market Interity". If you look at the SEC Case 4:07cv346 against Kelly Rogers, Marshall Gandy was the lead attorney for the SEC. If you review Marshall Gandy's new Lindedin profile, he is now Senior Regional Counsel at FINRA.

More to come.

Saturday, September 19, 2009

Kelly G Rogers files Bankruptcy Part II

Kelly G Rogers Bankruptcy filing (Part I) was not surprise to those who know his mode of operation. It also came as no surprise that his wife, Carrie Rogers, was excluded from the Chapter 11 filing. By the way, click on any of these documents to see them in full size. 

Interesting. So the purpose of this Bankruptcy follow up story is to;

1. Raise inconsistencies discovered while comparing Mr. Rogers “summary of schedules” from his bankruptcy filing against the Personal Balance sheet provided to bankers in order to secure financing.

2. Identify specific assets that have totally disappeared or are significantly understated on the new summary.

3. Question how Kelly Rogers can lose millions of dollars of friends, business associates and Investors money, rack up massive debt, then create a cleaver strategy to free him of all responsibilities and simply live happily ever after on Carrie Rogers stated income of $45,000.

As we explore this information, I wonder how the people from Series C LP feel today about loaning both Kelly and Carrie Rogers $125,000 on February 2nd, 2009? Afterall, Kelly and Carrie Rogers signed their good name on the bottom line, promising to pay the $125,000 back on May 1st, 2009. It makes me wonder who owns this Series C LP company and why they didn't know the track record of lawsuits and investigations surrounding Kelly G Rogers when they loaned him the money back in February? Couldn't they have Googled his name and seen the lawsuit issued by the SEC? I wonder how they felt on July 9th when Kelly filed Chapter 11? Do you think they now question whether they should have made that loan for $125,000? I'll bet they were very surprised when the bankruptcy papers showed up at their office shortly after the filing!  Maybe if this blog had been up and running back in February, they could have saved themselves some hardship at the hands of Kelly and Carrie Rogers? Thus, the purpose of this truth.

Moving on, let's review some facts. In case number 71-198-Y-0001-07 and 71-198-Y-0001-08, Kelly Rogers’s “First Amended Cross-Claim against Co-Respondents, Page 3: “Since July, 2006 Richard Weyand has methodically committed acts of fraud against Kelly Rogers by illegally taking from Kelly Rogers his rightfully owned interests in many businesses. In July, 2006 Kelly Rogers and Defendant Weyand were partners in no fewer than 15 entities that were partnerships, LLC’s, corporations or Joint Ventures. Kelly Rogers obtained his ownership in these entities through either payment from his personal funds, interests derived from founding the companies and assisting in building the companies, providing his personal financial statement and personally guaranteeing the debts of the companies, and providing services And equipment to the certain companies”. So we can clearly establish that the purpose of the July 17th, 2006 balance sheet was to provide information to “Personally guarantee debts of the companies”. So let’s compare the this balance sheet and the stated assets listed on July 17th, 2006 to the assets listed on the chapter 11 filings in case number 09-42154.

First, let’s do some quick clean up on the bankruptcy filing. On the Summary of Schedules, Mr. Rogers has incorrectly added his numbers. He has understated the amount owed to unsecured creditors by $104,997. He stated a total of $4,300,863 to unsecured, non-priority creditors. So, if you’re keeping score at home, the total owed should read $6,563,852 rather than $6,458,794.

Here’s the list of assets and asset values that have disappeared from the B6 Summary document on his Chapter 11 filing;

    Asset description               B6 Summary   July 17th, 2006 B/S

1. Westin Kierland in Arizona-     $20,000    $     47,000
2. St. Regis Apartment                 Missing     $   515,000
3. Household furnishings               $30,000    $  360,000
4. Jewelry                                    $0             $  117,000
5. Mass Mutual/NWM                $0             $     36,500
6. Automobiles                            $8,600      $   180,000
7. Great Eastern Securitiies          Missing     $1,750,000
8. Activa Mutual Fund                 Missing     $       8,500
9. Federal Reserve Deposits        Missing     $   450,000
10. HR Block investment             Missing     $     27,500
11. Component Source.com        Missing     $   430,000
12. Demeter Systems, LLC         Missing      $1,150,000
13. Carbucks Carwash, LLC      Missing        $ 337,000
14. Discovery Resources             Missing    $21,000,000
                                                _____      ___________
                                                 $58,600    $26,408,500

To me, this is shocking. It begs the question; which set of numbers are correct, the numbers presented to banks from his July 17th, 2006 balance sheet when he was personally guarantee debt or the numbers in his bankruptcy report? On the other side of the coin, did the value of these assets drop form $26,408,500 to $58,600 or have they been transferred out of him name into third party and sheltered from bankruptcy? Our guess is this did not happen because on Exhibit D of the filing it specifically asks if any property has been transferred in the last two years and the answer is “None”.

However, one investor group who plunked down $1,200,000 for a Falcon Energy deal has filed a “Motion for rule 2004 Examination of Kelly Gordon Rogers”. Under this motion, it would allow the investors to dig through the assets of Rogers to find where the heck their money went. “Prior to the petition date, and upon information and belief, the debtor obtained possession of assets of the trust and currently has knowledge of where the trust assets or proceeds thereof are located”. This "deal" occurred in February of 2007 when Mr. Rogers was establishing his “Falcon Energy LLC” empire.

So, is it possible for one individual; to lose millions of dollars of other peoples money, add an 8,000 square foot addition to their home, place the home in a trust, rack up $6.5 million in debt, file Chapter 11 to release the debt to creditors, then walk away to live on his wife’s $45,000 per month income? Is that possible? Only time will tell.

In the meantime, the answers to these and other questions can only be determined by the Trustee who will sort through the maze of information. In the end, the truth will be uncovered.