STATE AUDITOR JOHN MORRISON ISSUED FINAL AGENCY DECISION IN CASE
MID-AMERICA ENERGY, INC. FINED AND ORDERED TO PAY RESTITUTION
State Auditor John Morrison has issued a Final Agency Decision in favor of Montana's Securities Department in its case against Mid-America Energy, Inc. and its officers Gary Milby, Clinton Goff and Sy Schaiken. The Department previously alleged the company and its agents acted fraudulently by promising incredible returns on oil leases, including a 100% return on investments in 12 months and dividend checks of $3,600 each month, regardless of the amount of money invested.
A Missoula resident invested approximately $120,000 with this company and has not received any payment on the investment, either in returns or the principal invested and has been unable to make contact with the company for over a year. Instead of honoring the promises to investors, Milby threw a 16th birthday party for his daughter in October of 2006 that has been well publicized, including a feature on MTV's "My Super Sweet 16" television show. Milby reportedly spent over $100,000 on the party and then bought this 16 year old girl a BMW as a birthday gift.
Several other states, as well as the Securities and Exchange Commission, have taken action against Mid-America, Milby, Goff and Schaiken for securities violations similar to those alleged by Montana's Securities Department. Recently, Milby agreed to a permanent injunction from the SEC that bars him from selling investments in several oil fields in south-central Kentucky.
In the Final Agency Decision, Mid-America and its agents, Milby, Goff and Schaiken were fined $510,000 and ordered to pay restitution totaling $147,513.33 to the victims. Morrison stated, žIn times like these where energy costs are higher than ever these types of fraudulent activities are a true shame. Investors must be protected and violators must be shut down.