International Law

Petrogas Overseas Trading Fraud

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On June 7, 2010, the Securities and Exchange Commission ("Commission") filed an emergency civil injunctive action to halt an ongoing religious affinity fraud orchestrated by Petrogas Overseas Trading, LP and its owner, Samuel O. LeMaire.

The Commission's complaint alleges that beginning in at least 2007 and continuing through the present, LeMaire and Petrogas raised at least $2.3 million by appealing to the Christian faith of potential investors.

The Commission alleges that LeMaire, a Nigerian citizen living in North Texas, held himself out as a minister and a "man of God" who planned to start a foundation to help needy children in Nigeria.

LeMaire proposed to fund this foundation, and also make money for investors, with profits earned from the sale of taker-loads of oil from Nigeria.

The Commission alleges that LeMaire told investors that he had connections to, and relationships within, the Nigerian oil industry, and promised investors anywhere from a 200% to a 1,000% return on their money.

Unfortunately, the Commission alleges, LeMaire used investor funds to finance his own lavish lifestyle and support friends and family in the U.S. and abroad.

In fact, for at least two years, the Commission alleges, LeMaire continued to raise funds while claiming that millions of dollars were sitting offshore waiting to be transferred to the U.S. and distributed to investors -- all of which was false.

Full post as published by Misleading Advertising Law on June 08, 2010 (boomark / email).