The Associated Press reports that California resident Mike Campa was sentenced to 30 years in prison and ordered to repay $5.1 million to victims of an Arizona gold mining scheme and phony oil and gas projects in Montana. [Right, native gold. Credit, USGS]The gold mine was supposedly near Quartzsite, Arizona, and drew $4.5 million from one investor. The AP story said, "There was no mine, only mining claims in an area without enough water to produce the amount promised, said Phoenix-based U.S. Bureau of Land Management chief mineral examiner Matthew Shumaker, who participated in that investigation."
It also reported that the "Arizona Corporation Commission in May 2013 ordered John McNeil, Peter Pocklington, the former owner of the Edmonton Oilers, and their affiliated companies, Crystal Pistol Resources and Liberty Bell Resources, to pay $5.1 million for committing securities fraud in connection with the gold mining venture. They agreed to the order but did not admit or deny the commission's findings in a subsequent settlement."
The ACC cautions:
Even when selling a legitimate product, some promoters do not recognize the investment program they
have created is a security. Whether an alternative investment is a security is not always easy to determine and
depends upon the unique facts and circumstances of the transaction and not on what a promoter calls the investment product. Even when investing with someone they know, investors should verify the registration of sellers and investment opportunities and investigate disciplinary histories by contacting the Arizona Corporation Commission’s Securities Division at 602-542-4242 or toll free in Arizona at 1-866-VERIFY-9. The Division’s investor education website also has helpful information at www.azinvestor.gov
Mining
Investments
Gold
investments
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