Joey S. Dodson, the former chairman and managing partner of Citadel Energy, was indicted last month for allegedly running a $15 million Ponzi scheme.
Prosecutors stated that throughout the course of three years (November 2012 through may 2015), Dodson defrauded investors in partnerships believed to fund water-related services to oil and gas enterprises based in North Dakota. To do so, he used multiple Citadel Energy entities, raising $15 million in total.
Oil Boss Charged Over Alleged Ponzi Scheme
He now faces charges, including wire fraud, mail fraud, and money laundering. Additionally prosecutors allege that Dodson lied to investors about how their funds would be used and failed to mention the involvement of a private equity firm in the acquisition of the partnerships.
According to official statements, Dodson funneled more than $1.3 million to personal accounts. The res supposedly was distributed to three different partnerships.
In 2012, Dodson founded a collection businesses known as Citadel Energy, that specialized in water project in North Dakota. But, according to the U.S Securities and Exchange Commission (SEC), he failed to accurately keep track of accounting books— causing him to illegally commingle money from three separate ventures that were funded by different investors.
According to the suit, investors realized three years later that one venture was out of cash, making them question Dodson's reliability.
The SEC said that because Dodson alleged had misappropriated the money for himself, he attempted to cover his tracks by (amongst other things) forging backdated loan documents. In July 2017, Dodson settled with the SEC over the ordeal for $2.8 million.
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The securities fraud attorneys at Dimond Kaplan & Rothstein, P.A. (DKR) bring civil court cases and arbitration cases on behalf of investors who suffered financial losses in Ponzi schemes throughout the United States. Our interest is in helping our clients recover their money.
If you are looking for a Ponzi scheme attorney to review your rights and options, the Ponzi scheme lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of Ponzi schemes. We will aggressively pursue claims to recover your losses or damages.
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