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        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.

Kelly G Rogers Suspended as an Attorney in Texas

Kelly G Rogers of Frisco Texas has identified himself as a lawyer for many years. A graduate of Southern Methodist University, Mr. Rogers earned his law degree in 1986, according to an Avvo account set up by Mr. Rogers. However, if you click on the "LICENSES" section of the Avvo website, specifically "SEE LICENSE DETAILS", you'll notice Mr. Rogers’s status is SUSPENDED. Which begs the question; why does ones law license get suspended? (Since breaking this story, Rogers has updated his license and is now calling himself a lawyer. We have contacted to state bar association to raise questions as to how the bar can justify a license when so many are calling out Kelly Rogers on his business dealings and actions?)

We dug a little deeper into this issue. After all, someone who claimed in 2005 to have an "Extensive Knowledge of Securities and Exchange Law" would surely know how to keep a law license current. At least one would think so. However, this is not the case. On March 25th, 2002, the Texas Supreme Court issued Misc docket no 02-9063 ordering the suspension of Kelly G Rogers of Frisco Texas among others. His name is found under "COLLIN COUNTY", the same county who issued an indictment of Kelly Gordon Rogers on August 3rd, 2009. His State Bar number is listed as 17194020 and we crossed checked the number against the Kos Final Judgment and found it was accurate.

The Supreme Court of Texas has established a "minimum level of requirements" to maintain a basics of a law practice. The basic requirements are outlined in Misc. Docket No. 06-9075. In this order, the Supreme Court observes; "Despite notice and the availability of the Guide to the Basics of Law Practice course, many Texas attorneys have failed to heed this Court’s orders requiring attendance". Mr. Rogers has failed to meet the MINIMUM requirements in both 2002 and 2008. Having established this failure, let's look at how Mr. Rogers utilizes the status of  being a "Lawyer" to build credibility in the community.

Free Market Foundation

The Free Market Foundation's Board of Directors listed Kelly Rogers as the
Secretary. He's is also listed as an Esquire, meaning a lawyer. OK, so is it wrong to list yourself as an Esquire even though you've been suspended by the Texas Supreme court? Probably not. However, the willingness to be listed as an Esquire, while knowing your license has been suspended, demonstrates a weird kind of need to have the "appearance" of being lawyer. It's almost seems like kind of badge of honor to build up his credibility.

We found the attached document on the internet back in January 5th, 2009 listing Kelly G Rogers as the secretary of Free Market Foundation. Mr. Rogers lists himself as Esquire, Frisco Texas. Based on this information, one has to ask themselves if the Free Market Foundation knew Rogers had been suspended. Did they know Mr. Rogers had been sued by the SEC for his part as a "Facilitator" in an illegal ponzi scheme, case 07-CV-346? Did they know that Mr. Rogers sold investment opportunities to his friends, business associates and strangers that resulted in the loss of millions of dollars? Did they know that for many, it cost people their life savings? Did they know the Rogers is being sued by a variety of disgruntled individuals and corporate entities?

To the credit of the Free Market Foundation, they must have figured it out. If you link to the "About Us" site today, Kelly Rogers is no longer listed as Secretary. Good for them!!

Legacy Christian Academy

On November 3rd, 2007 the Legacy Christian Academy hosted its "Legacy of Champions” Auction event. We've attached the brochure from that event. On page 6 of the handout, the 2007-2008 Board of Directors are listed and none other than Kelly Rogers name appears as a board member.

This raises a host of questions that need to be directed to Legacy Christian Academy. The obvious questions is how well do they know Kelly Gordon Rogers and are they aware of his actions from 2004-2009 that have resulted in a flurry of lawsuits against him? Has anyone pointed this out to fine institution?

And is he still listed part of the board in 2009? Further, are they aware of the following;

1. Do you know that Kelly Rogers has been indicted on a Felony 1 count by the State of Texas? Go to the     State of Texas site and enter the name of Rogers, Kelly to see the current  proceedings.

2. Do they know he was sued by the SEC as a result of his role as a facilitator in a ponzi scheme?

3. Do they know he raised money for a variety of business entities that are mostly bankrupt today?

4. Do they know that many investors solicited by Kelly Rogers lost their life savings, have been forced to file
    bankruptcy and lost valuable relationships due to his actions?

5. Do they know he's being sued by many is his Amway business?

6. Do they know a he filed bankruptcy in July of 2009, owning others $6.5 Million?

It would be interesting to find our if he's still on the Board of Directors? However, they may not know about all this public information so let's hope our goal of protecting the public and presenting the truth has a positive effect in this situation. Only time will tell.

Wednesday, September 2, 2009

Kelly G Rogers of Texas files Bankruptcy on July 27, 2009

On July 27, 2009, Kelly Gordon Rogers of Texas filed Chapter 11 in the United States Bankruptcy Court. A Chapter 11 filing takes place when an individual or corporation cannot pay it's creditors. The idea is that the debtor's income can continue so they can pay off creditors. The entire process is conducted under court supervision. (See Update II, Update III and Update IV)

The case 09-42152 was filed in the Eastern District of Texas, a Voluntary Bankruptcy. Two subsequent documents were filed: Chapter 11 statement of current income and Summary of Schedules. Many of these documents can be found at the Collin County Clerks website at Here you can find a complete listing of liens and actions, all recorded and accessible to the public.

Total assets listed for Mr. Rogers total $3,273,975.00 while money owed to creditors totals $6,458,794.38. Total estimated income for Mr. Rogers is listed at $30,000 per month and his spouse, who was not included in the filing, has an estimated $45,000 per month. Income listed for the year 2007 was $756,587 and $588,012 for 2008. Income sources were listed as Quixtar and Noble Royalties and Oil Reserves (Make sure to check out the last line of the Noble Royalties link about contacting Kelly Rogers for more information).

Property included as 'exempt' totals $3,160,000 including a home listed on the attached website at $3,250,000. Additional photo's have been included;

Creditors holding secured claims against Kelly Gordon Rogers are no fewer than 3 lenders totalling $1,857,000, while 6 full pages are dedicated to others owed. In total, 24 creditors have secured claims against the above listed property including; unpaid property taxes totalling $6,961, unpaid Frisco school taxes in the amount of $12,208 unpaid time share fees and mechanics liens for renovations of the home.

Unsecured priority claims include $13,266 to the IRS. Additionally, unsecured non priority claims amount to 9 pages overall. Included are 2 law firms, one in Boston for $28,263 and the other in Dallas for $77,934, 18 listed as lawsuits, a variety of vendors who worked on the remodel, a charge for a lavish elevator and a host of others. In total, 42 individuals or companies are owed money. Ironically, one of the creditors listed is Kelly Gordon Rogers own company, Falcon Energy, LLC.

As a strategy against Mr. Rogers filing, one group of creditors have filed a Motion for Rule 2004 Examination of Kelly Gordon Rogers with the Bankruptcy court. This motion extends the scope of examination beyond the normal rules and is equated to a "fishing expedition" for the purpose of discovering assets and unearthing frauds.

This bankruptcy filing comes at a convenient time for Mr. Rogers. Not only is he embroiled in a variety of lawsuits, he was indicted on July 30th of 2009 by the grand jury in Collin County. Based on the rash of lawsuits against him, it would appear Kelly Rogers has a history of finanical wrong doing. History shows he was sued in 2007 by the SEC for playing a role as a "Facilitator" in a Ponzie Scheme. The Scheme was shut down in 2006 but not before countless friends and associates were wiped out as a result of these fraudulant investments. In 2009, the trail of persoanal bankruptcies and financial devistation is still being felt by many. While the SEC eventually ordered him to pay disgorgement of $100,000, prejudgement interest of $3,360 and a civil penalty of $50,000, it has not stop him from continuing his "Deals".
This blog will continue to provide updates on the bankruptcy, indictment and many other topics in the weeks and months ahead.

Tuesday, September 1, 2009

Kelly G Rogers of Texas Indicted by Collin County Grand Jury

Kelly G Rogers of Frisco Texas was indicted by a Collin County Texas Grand jury on July 30th 2009, case number 380-81600-09.  The attached mug shot was provided as public information by the Collin County Sherrifs office. For updated information as to the status of the proceedings, you can link to the following Clerk website: Click on the site, enter in Last and First name, click search. Then click on the case number 380-81600-09 and see the schedule.

You can keep current with the updates by clicking on Indictment update I.

According to the 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, then executed on August 14th. Rogers was booked, his mug shot taken and he was incarcerated. He was later released on $50,000 bond. Mr. Rogers is scheduled to appear on September 2nd, 2009 in the 380th District Federal Court, the honorable Suzanne Wooten will be presiding.

Ironically, Mr. Rogers birthday is listed as September 2nd, 1958. This is the date he's scheduled to make his first appearance in court! I wonder if the court will pause to sign happy birthday to this young man? Please continue to watch the Collin County website for continuing news and updates.

This is not the first time Rogers has been in legal trouble. In July of 2007, the SEC filed a complaint against Mr. Rogers for his role as a facilitator in a Ponzie Scheme. Mr. Rogers created a company called "Level Par" and solely responsible for investing with CR Davis and Global Finance and Investments. The SEC sued and won against Mr. Rogers who agreed to a final judgement that permanently restrains and enjoins Defendant from violation of several codes from the Securities act of 1933. These codes include Sections 5(a), 5(c) and 17(a). Also included was Sections 77e(a), 77e(c) and 77q(a) and Sections 10(b) and rule 10b-5.

Mr Rogers was ordered to pay disgorgement in the amount of $100,000 plus prejudgement interest thereon in the amount of $3,360 and a civil penalty in the amount of $50,000. The SEC rulings can be viewed below.
A link is also provided to a letter issued to all Level Par investors on August of 2006. This letter announced the SEC had contacted Level Par officials to report investments made by Kelly Rogers into entities run by CR Davis and Global Finance. These individuals and entities were part of an ongoing investigation by the SEC for operating as a Ponzie Scheme. The letter also documents $200,000 Mr. Rogers removed from Rio Grand Mining (a venture capital operation) and invested in the Travis Correll Ponzie Scheme in 2004. Shortly after details began to surface, Mr. Rogers was removed from Level Par and several other entities run by Richard Weyand. Several lawsuits were filed against Kelly Rogers in the subsequent years and these will be fully explored in the coming weeks.

Updates on these and other matters will be provided in the weeks and months ahead. Additionally, Kelly G Rogers personally filed Chapter 11 bankruptcy on July 27th, 2009 in the name of Kelly Gordon Rogers. This will be the subject of the next posting.