Friday, April 6, 2012

Another Petro America scam leader pleads guilty

Posted By on Fri, Apr 6, 2012 at 11:30 AM

The slogan refers to the prosecutors.
  • Petro America continues to unravel.
Allen Collins pleaded guilty to playing a role in a $7.2 million securities fraud on Thursday, becoming the fourth defendant in the minister-led Petro America scam to do so. Collins banked at least $172,774 by selling Petro stock to at least 57 investors. Petro also paid him $13,300 in consulting fees and other payments. Collins was never licensed to sell securities and he ignored cease-and-desist orders from Kansas and Missouri while selling the shares.

"Frequently, Collins would pass along information about Petro that he got from a co-conspirator, including that Petro had oil assets and added 30 to 40 gold mines. He would claim that Petro bought and sold oil, and that it had a packaging plant. While much of the time Collins simply repeated information to investors that he had heard from others, he knew that it was incomplete and potentially misleading," U.S. Attorney David M. Ketchmark said in a press release.

A retired welder, Collins was part of the Kansas City-based Minister's Alliance which was a group of about 15 clergymen that pushed Petro stock on its flocks. An October 2010 Pitch piece examined just how heartless the ministers' scheme was.

Collins faces up to five years in prison and fines up $250,000 plus restitution.

Tags: , , , ,

Comments

Subscribe to this thread:

Add a comment

Most Popular Stories

Slideshows

All contents ©2015 Kansas City Pitch LLC
All rights reserved. No part of this service may be reproduced in any form without the express written permission of Kansas City Pitch LLC,
except that an individual may download and/or forward articles via email to a reasonable number of recipients for personal, non-commercial purposes.

All contents © 2012 SouthComm, Inc. 210 12th Ave S. Ste. 100, Nashville, TN 37203. (615) 244-7989.
All rights reserved. No part of this service may be reproduced in any form without the express written permission of SouthComm, Inc.
except that an individual may download and/or forward articles via email to a reasonable number of recipients for personal, non-commercial purposes.
Website powered by Foundation