OffshoreAlert
Daily news, documents and intelligence about Offshore Financial Centers and those who conduct business in them that you will not find anywhere else.
RSS Feed Print
And yet more problems for David G Rose
Anonymous
Posted: Friday, August 12, 2011

Posted: 11/2/2005 3:11:44 AM

By: Patick Loughran

Quit blaming other people.Oil and Gas is a very high risk investment.You should have known that when you wrote that check.You obviously lied to the rep. serving you into believing that you were someone in position to win or lose that type of capital.How come no one is acknowledging Mr. Rose's success as a 87% completion rate Oil and Natural Gas developer for over 25 years?This is a game of whether you can win or lose over a certain amount of time.These types of investments aren't for the average everyday stockholder,but for people who are liquid,and can afford to take a loss.Mother Nature can fool us all,but if everything goes the way the industry is headed,over the next 10 to 15 years can be the biggest money making opportunity in the U.S ,it's as simple as that.economics101,supply and demand.Win or Lose.


Anonymous
Posted: Friday, August 12, 2011

Posted: 10/2/2005 3:44:40 PM

By: David Marchant

David Rose and his accomplices have been operating gas and oil-based investment scams for years and there are several articles about him and his group in our Story Library.

David Marchant


Internal Administrator
Posted: Friday, August 12, 2011
Joined: 10/12/2010
Posts: 5780


Posted: 10/2/2005 7:01:30 AM

By: Hunter

http://www.bgdailynews.com/articles/2005/10/02/local_news/news/2newsa.txt

Fire, business under investigation
FBI looking into former BG man Rose amid accusations by investors

By HAYLI MORRISON, The Daily News, hmorrison@bgdailynews.com/783-3240

Sunday, October 2, 2005 12:26 AM CDT

Former Bowling Green businessman David G. Rose is under investigation by the FBI and has been banned from conducting business in Kentucky.

In the meantime, an investigation into a Sept. 7, 2002, fire at Rose's former home, 696 Rivergreen Lane, remains open.

"There are some other entities involved - not so much the fire - but there are some other matters being looked into and that's the reason there's been no final disposition on the case," said Kentucky State Police Arson Investigator David West. "There are other interests at stake."

West said the source of ignition is still undetermined, but it appears the fire began in the home's attic.

The FBI is assisting with that investigation, while simultaneously investigating Rose's latest oil development company, Oklahoma-based enTerra Energy. In September 2004, FBI agents searched two of Rose's offices in Louisville.

"We're conducting an investigation of David Rose and his business and it is ongoing," FBI Agent David Beyer said.



An agreed order of permanent injunction, signed July 29 by Franklin Circuit Judge Roger Crittenden, bars Rose from conducting business within Kentucky or even selling to Kentucky residents.

Several states, including Pennsylvania and Ohio, have previously issued cease and desist orders that prevent Rose, who did not return phone calls for this article, from operating within those states.

The July 29 injunction filed in Franklin County resulted from a civil case the state of Kentucky and its Office of Financial Institutions filed a year earlier, claiming Rose, enTerra and numerous salespeople employed by the company violated state securities laws.

From the Louisville offices, enTerra employees were selling interests in two development projects - McKean County 3 Well and Pennsylvania 3 Well, according to the court record.

"There are approximately 50 investors from 22 states who have purchased interests in the programs, totaling approximately $633,000," states the order. "The division has no record of any filing for these offerings."

The order further states that eight salespeople on the enTerra payroll were not registered with the state to sell securities.

The company currently operates out of Tulsa, Okla.

In 1983, Rose founded a similar company - Bowling Green-based Robo Enterprises Inc., which filed for bankruptcy in 2001.

Ed Cole, 78, of Locust Grove, Ga., said he lost nearly $100,000 through investments in Rose's business ventures.

In 2000, he initially invested $33,000 in a program involving three wells after a Robo salesman he befriended told him an investor's wife had developed cancer and the investor needed his money back, but the reimbursement could not be made until a new investor was found to replace him.

Cole decided to help out, investing $33,000 so the man could be reimbursed.

"My wife and I talked it over and said, 'Well, the well is already producing.' I said, 'We'll get our money back in probably less than a year,' " Cole said.

Over the next several months, Cole invested a total of about $64,000 into the wells - one of which was supposedly already producing returns of $2,600 per month.

Cole instead saw one check for $500 and then a few more, smaller checks for a total return of less than $1,000 before the checks quit arriving completely. Cole said Robo representatives told him the once-productive well had stopped producing when drillers accidentally dropped a piece of drilling equipment into the well.

Robo invited Cole to transfer his "partnership" to another of the company's oil exploration ventures. Cole took Robo's offer and never saw any profits. Shortly thereafter, Robo filed for bankruptcy.

"I began to get suspicious about it," Cole said. "It probably took six or seven months - I got suspicious, but you know, you want to believe something. I liked the guy I was dealing with, but once I started researching it, the proof was just too much. I knew I was being lied to.

"They had some nice brochures, showing the well producing and the whole ball of wax, and then, all of a sudden, the well is not producing. ... What are you going to do? Take their word for it or go out there and look."

In a similar story, Ronald Daringer of Cambridge, Md., says he, his wife, Dolores, and his son, Franklin Thomas, lost a total of about $3.2 million investing in oil wells in Pennsylvania and Ohio with Robo Enterprises in the fall of 1998.

The Daringers have since won a federal lawsuit against Rose and Robo Enterprises and they were awarded $2.7 million - on paper. They have yet to receive any of the court-ordered payment.

"I should've maybe been a little more diligent and sent my own engineer out to the oil fields, but you know, if I can get 2.7 back out of 3.2 ... but I got zero," Ronald Daringer said. "That's another lie."

In an affidavit in the civil file, Daringer said he first learned of Robo Enterprises at a financial investment conference in San Francisco in late 1997. He found the company's record to be clean with the Better Business Bureau in Western Kentucky and decided to invest.

"This was a can't-possibly-lose kind of thing," he said, adding that Rose had promised him that each well would produce up to a 50-percent return on his investment each year.

"Well, none of the wells came in," Daringer said. "I guess some of them produced meager amounts for a small period of time, but compared to the cost, I guess it was maybe a 10 percent return at the very, very best well."

Negotiation attempts were fruitless, forcing the family to sue, Daringer said.


 

Jump to different Forum... 

We hunt for red flags in high-value, cross-border finance by monitoring offshore and onshore courts, regulatory actions, offering documents, and other sources - and email you the results.

View Recent Digests

Cayman Court Secrecy: A Huge Red Flag for Foreign Investors & Clients
David Marchant
As any fule kno, the biggest enemy of fraud, corruption, money laundering, and other forms of financial crime is transparency, while their best friend is secrecy. That's why the unprecedented mass sealing of cases that's taking place at the Financial Services Division of the Grand Court of the Cayman Islands is repugnant to anyone with a genuine concern for financial crime.