Crow tribal member faces securities fraud charges

BILLINGS, Mont. (AP) – Officials in a third state have accused Crow Tribal member Ted Hogan with fraudulently seeking investments in purported energy development on the Crow Reservation.

Hogan and three others are awaiting trial on racketeering charges in New Mexico, and he has been convicted of violating securities laws Virginia.

On Dec. 8, the Securities Division of the Arizona Corporation Commission filed a proposed order against Hogan accusing him, his wife, Christina L. Damitio, and his company, Theodore J. Hogan & Associates, of violating securities laws by misleading investors about their plan to develop minerals on the Crow Reservation.

Hogan declined comment on the Arizona charges when reached by The Billings Gazette.

The Arizona case says Hogan and his company raised $1.9 million from at least 32 investors since 2001 by promising them a share of the up to $360 million Hogan expected to earn for commissions, consulting fees, royalties and other compensation from the energy development.

Investors were promised they would receive five, 10 or 15 times their investment or a percentage of the proceeds of the project.

“No investor has received the return of their principal or received the expected returns,” Arizona securities officials said in seeking a cease-and-desist order. The case also seeks restitution and a $5,000 fine for each violation of the securities act.

Rebecca Wilder, a spokeswoman for the Arizona Corporation Commission, said Hogan and Damitio have 10 business days from when the proposed order was filed to request a hearing before an administrative law judge.

At one time, Hogan was the Crow Tribe’s exclusive agent for securing funding for energy development, but the tribe terminated the agreement after his solicitations prompted complaints to federal officials.

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Information from: Billings Gazette,
http://www.billingsgazette.com