Native American Fined in Securities Case
November 25, 2008
BILLINGS, Mont. (AP) — A state agency in Virginia ruled Monday that Crow tribal member Ted Hogan violated that state's securities laws in seeking investments for minerals development on the Crow Reservation that never occurred.
The Virginia State Corporation Commission ordered Ted Hogan of Sedona, Ariz., and his company to pay $95,000 in civil penalties and just over $13,000 for the cost of the investigation.
The penalties could be waived if Hogan repays the investors by Jan. 1. Hogan said he had not seen the order and declined comment. He denied the charges and did not appear at the hearing.
The securities case stemmed from a complaint filed by Virginia residents who invested $62,000 with Hogan and his company in 2004.
Elaine and William Roulidis and his brother said they were promised a 5 percent interest in a potential $360 million in commissions that Hogan said he expected to receive after minerals development began on the reservation.
"The evidence also supported the conclusion that Hogan did not use any of these funds for the purported venture, but instead converted investor funds for his own personal use," the commission said.
Hogan also sold the same 5 percent agreement to at least 40 other investors for various amounts of money, the commission's report said.
Hogan's development never happened. Bank records showed Hogan received $2.1 million from investors and he has admitted to receiving about $4.1 million, the commission said.
Hogan filed a lawsuit against Elaine Roulidis for $351 million, claiming that she defamed him and hurt his business. She countersued for $350,000, saying he defrauded her. The lawsuits are pending.
In recent years, Hogan has been promoting energy development through his company and at one time was designated by the Crow Tribe as its exclusive agent for securing funding. The tribe terminated its agreement with Hogan a few years ago after his solicitations for investments prompted complaints to federal officials.
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