Aug 16 2008
Oilpods Receiver Updates
Earlier on, I visited the website of Powder River Petroleum to find out more updates about their lawsuit by Oilpods.
Powder River has already been placed into receivership for a host of charges brought against them - these includes operating a ponzi scheme and cheating thousands of Asian investors.
(Update: Powder River will be contesting those charges.)
The receiver has uploaded at the Powder River website quite a fair bit of information on what is happening .
However, the links don’t seem to be coded correctly. I managed to find the correct links to download the documents. Here they are for easy access:
Plaintiff’s First Amended Petition
Affidavits of Newsome, Chang, Lim Romine
Plaintiffs Motion for Temp Restraining Order and Permanent Injunction
Plaintiffs Motion to Reduce Bond
Hi Lioninvestor,
Your postings on OILPODS with PWDR involvement is an eyopener on what PINK SHEETs or Penny Stocks have severe consequences etc if the going is not good!
I understand that Oilpods in partnership PWDR is a Pink Sheet compnay listed in the OTCC:BB is in trouble, likewise EDGEWORTH PROPERTIES is a subsidiary Edworth Ventures Inc. if I’m am not wrong and it is listed in the Pink Sheets Exchange or OTCC:BB symbol EGWV.
So my question is how safe is company listed in the OTCC:BB or Pink Sheets Exchange?……Due Diligence is better done than to invest blindly. A thousand Asian investors were mentioned invested with OILPODS!
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It does not matter if they are a pink sheet company, OTCBB, AMEX or NASDAQ listed, penny stock or otherwise, fraud can still happen. Look at WorldCom or Enron the fraud is even bigger. But what is important to note is that both the CEO and CFO are crimindally liable if they reported untrue financial statements to the SEC in the US under the Saban-Oxley ruling.
In Oilpods’ case, it is simply that they did not do their due diligence in dealing with their corresponding party, Powder River, whether or not they are listed or just reporting to the SEC as a public company. Because of that, I believed that Oilpods will faced very difficult decisions ahead while incurring legal, operating expenses, whether or not the law suit will yield any recovery of assets from Powder River to the investors. I believed that the money is ALL GONE! Brian Fox, CEO of Powder River is probably in a beach resort somewhere enjoying a large portion of the S$65 million that investors put in.
It would be very tough for Oilpods to sell any new projects or even new investment scheme that is not oil and gas related in the future.
Pink Sheet companies do not need to do reporting to the SEC.
Investors need not be disheartened by the oil and gas industry, it is still extremely lucrative. But of course, there are also risks. It is how you manage those risks.
tan
[Reply]
There has been some new developments. Powder River will be defending their position. This is the document which they filed.
http://www.lioninvestor.com/code/uploads/vacate-discharge.pdf
Hi Tan,
One must understand what Pink Sheets companies is all about…..More DUE Diligence must be done as to what I researched and infos. gathered……Pink Sheets or Penny Stocks are different from Blue Chips stocks. Pink Sheets are stocks with NOT much assets backing if I am not wrong!
Hope that we are all in the PINK OF HEALTH to invest wisely!!!
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