OIL EXPLORATION FIRM SIGNS CONSENT DECREE WITH NEVADA SECRETARY OF STATE; AGREES TO $30,000 IN CIVIL PENALTIES RELATED TO SALE OF UNREGISTERED SECURITIES
(Carson City, NV; August 7, 2008) –A Kentucky-based oil and gas exploration company paid a $30,000 civil penalty to the Nevada Secretary of State’s Securities Division related to allegations that the company advertised and sold unlicensed securities in Nevada.
Black Diamond Oil, LLC, a Kentucky limited liability corporation and its principals Leonard Manson and Matt Polaski, denied the allegations but voluntarily entered into a consent agreement with the Secretary of State’s office. Auditors for the Secretary of State say that Black Diamond advertised the sale of fractional undivided working interests in oil wells on the popular Craigslist.com website, as well as on the company’s own website. The Nevada Securities Division also alleges that Manson and Polaski actually sold securities without registration or licenses to Nevadans, and that the securities themselves were not registered as required by Nevada law.
“Here’s the nexus of two very high profile issues right now,” said Nevada Secretary of State Ross Miller. “We have an unstable economy in which everyone is looking for better returns on investments, and we have that magic word ‘oil’ which everyone thinks is instant profit. Of course it’s hard for some people to resist, but as always we encourage potential investors to conduct due diligence. Check to see if the securities you’re offered are registered, and check to see if the people offering them to you are registered or licensed. Frequently, that doesn’t take any more than a brief visit to our website at www.nvsos.gov.”
For more information on how to choose an investment professional, go directly to
http://www.nvsos.gov/securities/investors/publications/knowyourbroker.asp , or follow the Securities Center “investor education” links at www.nvsos.gov . Nevadans who believe they have been the victim of investment fraud can contact the Secretary of State’s office at (702) 486-2440, (775) 688-1855, or (800) 758-6440.