Texas State Securities Board: 2014 Enforcement Actions

The Texas State Securities Board, enforcement division and Dale Barron have been busy in 2014. Apparently cheating is not just a Kelly G Rogers thing. Look forward to seeing Rogers' name in the June edition.

MAY 2014

Stephen Patrick Jones pleaded guilty May 1 in U.S. District Court in Houston to conspiracy to commit wire fraud. Jones’ sentencing date has not been set. Jones was president of Intermodal Wealth Inc., a company that stole at least $5.5 million from investors. Jones and fellow Intermodal Wealth executive John Patrick Acord operated a scheme in which they promised investors profits from the leasing of intermodal shipping containers. Acord, who has used the name “John Delano,” is a fugitive.

APRIL 2014

A Bell County grand jury indicted Andrew Joseph Longoria April 16 on charges of securities fraud, theft, and money laundering for the alleged sale of investments in notes, mutual funds, and real estate projects through a company called LRS Investments.

MARCH 2014

Garry B. Smith of Garland was indicted by a Collin County grand jury March 25 on charges of theft, securities fraud, and money laundering for the alleged sale of fraudulent investments contracts in oil and gas drilling projects. A co-defendant, Robert James Nelson of Prosper, was indicted on the same charges. Smith and Nelson allegedly sold units of interest in a six-well venture in Archer County. The men failed to disclose that they used investor funds to pay for expenses unrelated to drilling and other costs. The indictment also alleges that Smith did not disclose to investors his history of regulatory sanctions, judgments, and orders of restitution from civil court lawsuits.

 

Derek A. Nelson of Edmond, Oklahoma, who allegedly stole $12 million from U.S. investors in a real estate investment program, was indicted March 25 in Collin County State District Court on charges of securities fraud, theft, and money laundering. According to the indictment, Nelson sold and offered for sale shares in a real estate-based program called CMHC Investment Program, but failed to disclose that CMHC was not earning sufficient profits from the buying, rehabilitating, renting, and sale of properties to make payments to investors.

FEBRUARY 2014

Russell Erxleben of Dripping Springs was sentenced to seven and one-half years in prison on Feb. 24 in U.S. District Court in Austin. Erxleben pleaded guilty Dec. 18, 2013, to wire fraud and money laundering charges. According to a federal indictment, he raised more than $2 million from investors selling investments in German Government Gold Bearer Bonds from the 1920s and interests in an investment pool that would be used to acquire a painting by Paul Gauguin. In 1999, Erxleben was convicted of a $35 million foreign currency trading fraud and served five years in federal prison.

 

Leland Alan Dykes of Houston was sentenced to 15 years in state prison Feb. 24 for the fraudulent sale of nearly $1 million in “secured debt obligations.” Dykes, a former registered securities agent, pleaded guilty last year in Harris County State District Court to one count of misapplication of fiduciary property. Dykes falsely claimed the notes he sold were secure because they were backed by international insurers.

 

The indictment of Steven Patrick Jones and John Patrick Acord, executives at Intermodal Wealth Inc., was unsealed Feb. 27 in U.S. District Court in Houston. Jones and Acord (who also used the name “John Delano”) were charged with multiple counts of wire and mail fraud and one count of securities fraud. The indictment alleges the two men collected at least $5.5 million from investors in a fraudulent scheme involving investments in intermodal shipping containers.

JANUARY 2014

David Kevin Lewis, the chairman of Richardson-based oil and gas company Always Consulting Inc. (ACI), was sentenced to 30 years in federal prison on Jan. 24 and ordered to pay $2.5 million in restitution. A U.S. District Court jury in Dallas in September 2013 convicted Lewis on one count of conspiracy to commit securities fraud and 23 counts of securities fraud. Lewis had a history of regulatory sanctions and in 2000 was convicted of federal fraud charges in a case involving oil and gas offerings. Lewis did not disclose those facts or that ACI did not have the funds for drilling.

 

Eddie Lacy Stivers III was sentenced to 85 years in state prison on Jan. 31 for engaging in the fraudulent sale of stock and promissory notes, with some sales to investors coming after Stivers was indicted by a Hood County grand jury on charges of first-degree securities fraud, first-degree theft, and second-degree securities fraud. Stivers sold investment contracts through a company called Life Style Protectors and Advisors LLC. The contracts supposedly would have given investors shares in two other companies. Stivers did not disclose his indictment to investors, according to an Affidavit for Evidentiary Search Warrant issued in Tarrant County.

 

William Paul Hudson of Plano was convicted of theft and sentenced to 10 years in state prison on Jan. 31 in Collin County State District Court. Hudson also received a sentence of 10 years, probated, on charges of securities fraud and money laundering and was ordered to pay restitution. Hudson stole approximately $600,000 from at least 50 investors in multiple oil and gas projects in Jackson, Gonzales, and Jim Wells counties. Hudson directed only a small fraction of investor funds to oil and gas programs, instead spending the majority of the money on personal expenses.

KELLY G ROGERS REPORT NAMES BRADLEY DEAN AS 2012 MAN OF THE YEAR

After much deliberation, the KELLY G ROGERS REPORT has named
D. Bradley Dean, D.D.S., M.S. as its "Man of the Year".

This was a difficult decision because so many new faces had emerged onto the playing field of the Kelly G Rogers and Carrie S Rogers show.

For example, Dale Barron of the Texas State Securities Board has worked tirelessly in conjunction with the Collin County DA's office to vigorously enforce the Texas Securities Act violations committed by Kelly G Rogers.

How about the Honorable Mark Rusch of the 401st District Court? Here's a 27 year, no nonsense purveyor of good judgement over crooks and con-men.  In less than 60 days, Judge Rusch has provided verbal smack-downs on TWO different occasions on Kelly G Rogers.

And how can we overlook the fine work of James Skinner of Pezzulli Barnes, LLP? With 25-years of law enforcement and prosecutor, he's brought a vast amount of investigative knowledge and experience to this case. With the combined talents of Michael F. Pezzulli, they continue to bring the hammer down on Rogers' seemingly loose grip of the facts.

But at the end of the day, it's been D. Bradley Dean's drive, focus and perseverance that has brought all these good men to the table. Through a good sense of right and wrong, he's kept motivated to push forward in doing the right thing.

We've talked to many past investors and they all held this same view of right and wrong, all wanted to move forward with their own litigation but most found themselves wiped out financially after the affair was over.

And this is why the KELLY G ROGERS REPORT has voted D. Bradley Dean as its "Man of the Year". 

In the words of Harry S. Truman: “I don’t give them Hell, I just tell the truth about them and they think it’s Hell.” —

Kelly G Rogers Makes Court Appearance

In the words of Bob Seger's song, Let it Rock: "In the heat of the day, down in mobile, Alabama, Workin’ on the railroad with a steel drivin’ hammer".

And the "Steel Drivin" Hammer' in Kelly G Rogers' life is the trio of Jim Skinner, Michael F. Pezzulli and Texas State Securities Commission's Dale Barrow who are beginning to crash down on Rogers freedom.

Yesterday's court appearance was a good day for our "Law Dream Team" and a bad day for the criminal, Kelly G Rogers. Of coarse, all people are Innocent until proven guilty.

According to the Collin County Website, it seems that the Texas State Securities Commission has taken over the prosecution of all the actions filed by indictment. This would include all SEVEN actions starting with the 2009 indictment--3808160009, the FIVE from May 1st, 2012 and the one from June 20th, 2012.

Like SEVEN gold medals hanging around Micheal Phelps neck, this is a fine achievement for any businessman who's on the fast track to wealth creation.

Yesterday was Kelly G Rogers first appearance for many of the recent indictments and it was a really bad day for him in court.

First, his lawyer John Charles Hardin resigned. According to the Collin County Site under Kelly G Rogers, case #3808160009 (second page) on 8/2/2012 the court "Granting the motion to withdraw as the attorney of record". Smart man. 

Second, presiding District Judge of the 380th District Court R. Davis put the hammer down on Rogers who once again showed up without council in hopes of delaying the inevitable...again.

His ruling; "Reset in 30 days for counsel and if counsel not retained, then proceed with appointment of attorney or Pro-Se and set for Trial by December1, 2012. Judge R. Davis. 

As I read it, the Judge is saying that Kelly G Rogers Frisco has had ample time to hire an attorney and prepare. You show up next time with a lawyer or the court will assign a public defender and we're going to trial NO LATER THAN December 1, 2012. 

Merry Christmas everyone! Next appearance on September 7th at 9:00 am.  

Kelly Rogers Arrested --Served with FIVE Warrents

KELLY G ROGERS ARRESTED--SERVED WITH FIVE INDICTMENTS!

Holy Cow. It's been SEVEN years since Kelly G. Rogers invested in his first illegal pyramid scheme called the "Program" or, as the SEC calls it,  the "Travis Correll" Ponzi Scheme. My how time flies.

But today, four squad cars rolled into his quiet Frisco, TX neighborhood and arrested him. They served FIVE Active warrants for his arrest including; 

• TWO Counts of Money Laundering
• TWO Counts of Theft of Stolen Property
• ONE Count of Securities Fraud

As you recall, it was spring of 2006 that Kelly G Rogers was sued by the SEC for his involvement in the Level Par Ponzi Scheme. He settled with the SEC by paying a minimal fine and signing some papers saying he'll never do it again. A simple slap on the wrist.

Once the SEC settlement was behind him, it was like the starter gun going off in a 400 meter track event because he was off to the races. In fact, it appears he never stopped doing what the SEC warned him not to do.

Check it out, if you search Kelly G Rogers and Carrie on the Collin County Court record Inquiry, the following activity comes up is:

• (6) Civil Lawsuits involving Carrie S. Rogers.
• (9) Civil lawsuits involving Kelly G. Rogers
• (1) indictment against Kelly G. Rogers.

It appears to me that Kelly G Rogers is a very crafty attorney who uses the law to bully, intimidate and manipulate others into giving him what he wants. And if he thinks he's been wronged? He'll sue you. But this time, it seems Kelly Rogers has messed with the wrong guys.

Introducing the DA's Office of Collin County, the State of Texas Security Commission and Dale Barron--attorney in the enforcement division of the State Securities Board.

The cooperation among these agencies resulted in Kelly G Rogers being arrested on May 4th, 2012. His wonderful mug shot.