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A Dozen Defendants Face Charges in Petro America Securities Fraud Case

Posted on Jul 29, 2011

Last month, eight more people were indicted by a federal grand jury for their alleged involvement in the Petro America Corp scam that purportedly bilked investors out of more than 7 million dollars. These eight defendants join four others who had previously been indicted and two ministers who waived their right to a grand jury and pleaded guilty to charges in June.

Federal prosecutors allege that the defendants took part in an investment scam that involved Petro America Corp, a Kansas City-based petroleum company. Prosecutors claim that Petro America Corp was little more than a shell corporation; however, the defendants purported it was worth about $284 billion in assets.

Since many of the sales tactics occurred in churches, the defendants are accused of selling fraudulent securities in the company as part of what has been called an affinity scam. According to prosecutors, approximately 12,000 people invested about $7.2 million in Petro America.

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