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Microcap & Penny Stocks : OILEX (OLEX) -- Ignore unavailable to you. Want to Upgrade?


To: OFW who wrote (2094)12/20/1997 12:02:00 AM
From: Richard W Coffman  Read Replies (1) | Respond to of 4276
 
Your wright. But why lay it all on the line to get money to drill and bring in wells and when they start to flow dump? My thought is instead of 1mil shares for your debutre dollar why not take twice your money invested away from crent stock holders value, then get 10X the stock crule world. More speculation Rich C



To: OFW who wrote (2094)12/22/1997 4:12:00 PM
From: Marty Rubin  Read Replies (1) | Respond to of 4276
 
Good afternoon Offie,
I think that if you want your questions to be answerd you should call the company and ask not for Omar, not for The Baron, but ask for Mr. Burditt. This will do a much better jub then just throwing speculation on this thread--persuming your intentions are still the same. For some reason, you don't feel comfutable calling the company. Let me ask you one question: would you buy the entire company for $1.5M? You may cut your pile by half now. Every company has problems and Oilex is no different. I took all of your "many" and found only some. You want me to lye? All of your posts are complitly relavent. So, if you want your questions to really be answered, CALL THE COMPANY and ask the person who's in charge. When you ask Omar, when you ask The Baron, they have to go to management to ask. They wont tell you that they can't answer. They simply wont answer. When you talk to the source, ONE ON ONE, your sure to find what your are looking for. I know what you're looking for so you might as well not call. You'll only be disapointed. What you are looking for--that is.
TX has major storms so they may slow down for a few days. I havn't call the company but it was on the news. Unless they can work under any condition--which one said on the SI with relats to the Aust. prop. Good day, Marty



To: OFW who wrote (2094)12/22/1997 5:01:00 PM
From: OFW  Read Replies (1) | Respond to of 4276
 
POST 1 OF 4: CRITICAL INFORMATION FOR ALL OILEX INVESTORS


POST 1 OF 4 (This Introductory Post)

This is the first of four posts to be made over the next few minutes. All of the information provided in these posts was obtained from the official public records of the Office of the Securities Commissioner for the State of Kansas and from the 18th District Court of Sedgwick County, Kansas. All information contained herein is public and available to any individual upon demand to the appropriate agency.

The information was discovered through the course of appropriate due diligence which I have performed over the past several weeks and is deemed to be relevant material concerning my past and present investment in the common stock of Oilex, Inc. (OTC:BB OLEX). The information is posted on this public forum out of my personal belief that the information contained herein is of a material concern to all past, present and potential future investors in Oilex.

All publicly traded companies have a duty to fully inform any actual or potential investor of matters which materially effect the company. Investors have a right to expect full and accurate information prior to, and during the course of, investment decisions. As such, it is my personal belief, that Oilex, Inc. should have previously released this information to all investors. The company's failure to previously release this material information has placed me in a moral and ethical position in which I have been forced to provide this material information to all past, present and potential future investors.

Let me conclude, that I regret being forced into a position of publishing this information. However, insofar as the company has failed to fully inform investors of material matters of concern, I am duty bound to make this information available to fellow Oilex investors.

The information will be presented in a series of four consecutive postings (including this one) here on SI. The posts are as follows:


POST 2 OF 4

This post will contain the full text of a Temporary Cease and Desist Order issued by the Securities Commissioner of the State of Kansas and dated April 2, 1990. The order was issued against Allen L. Burditt II, Carlo Ugolini, Carancahua Resources, Inc., and Wellington Funding Corporation.


POST 3 OF 4

This post will contain the full text of several documents relating to Case No. 91C-3673, George and Connie Wayman Vs. Allen L. Burditt, et al, filed on December 30, 1991 in the 18th District Court of Sedgwick County, Kansas. The documents include the Plaintiff's Amended Petition dated April 17, 1992; Plaintiff's Motion for Default Judgment dated June 12, 1992; Court Order by Journal Entry of Default Judgment dated June 19, 1992; and, Satisfaction of Judgment entered before the court on April 30, 1996.

This post is extremely long, for which I apologize. However, in light of the seriousness of the allegations made in this civil proceeding, it was my opinion that the full text of the documents should be posted to allow for each investor to determine their own degree of belief in the statements made before and by the court.


POST 4 OF 4

This post contains the full text of two documents relating to a criminal proceeding in the State of Kansas. The first is a Warrant for the arrest of Allen L. Burditt, II. The second document included is the Journal Entry of Judgment issued by Division No. 13 of the Eighteenth District Court of Sedgwick County, Kansas on July 29, 1993 which establishes the conviction of Allen L. Burditt II on felony criminal charges under two provisions of the Kansas Securities Act.


EDITORIAL NOTES TO POSTS 2, 3 AND 4 OF 4

The following note applies to the text of all three of the following posts (2, 3 and 4 of 4):

The text on these posts has been manually re-entered from documents filed as public records with the named courts. I have attempted to review the text for typographical errors on my part and apologize for any typographical errors which were not detected prior to posting. In the event that any reader discovers an error or omission from these postings they are requested to notify the poster who will immediately cause to be published a correction of the error.

(sic) Any use of (sic) in the following texts refers to the actual text submitted to the court which the poster herein believes was an error in the actual document --- such text believed to be in error has not been corrected by the poster herein.

Finally, in the interest of the privacy rights of all individuals, and in the judgment of the poster, I have withheld from these public documents all personal information such as home addresses, dates of birth and social security numbers. While this information is part of the public record, I do not believe it serves any purpose to publish that personal information in this forum. Any individual who wishes to obtain that information may go directly to the public records.

Offie



To: OFW who wrote (2094)12/22/1997 5:02:00 PM
From: OFW  Respond to of 4276
 
POST 2 OF 4: CEASE AND DESIST ORDER

Post 1 of 4 previously posted on this date on this SI thread is hereby incorporated into this post and all readers of this post should read Post 1 of 4 prior to reading this post.


BEGINNING OF TEXT OF TEMPORARY CEASE AND DESIST ORDER


BEFORE THE SECURITIES COMMISSIONER
OF THE STATE OF KANSAS

Docket No. 90E053

In the matter of:

ALLEN LEE BURDITT II,
CARLO UGOLINI; CARANCAHUA
RESOURCES, INC.; and
WELLINGTON FUNDING CORPORATION, Respondents

A proceeding pursuant to K.S.A. 17-1266a.

TEMPORARY CEASE AND DESIST ORDER

Now on this 2nd day of April, 1990, the above entitled matter comes on for consideration by the Securities Commissioner of Kansas. Having ordered an investigation of the respondents' activities pursuant to K.S.A. 17-1265 and having been apprised by the Division of Enforcement of this agency of the facts revealed in said investigation, the Commissioner finds that sufficient evidence exists to conclude that the respondents have engaged in, or are engaging in, or are about to engage in acts and practices constituting violations of the Kansas Securities Act, K.S.A. 17-1252 et seq.

FURTHER, the Commission finds for the purpose of K.S.A. 17-1266a(b), that sufficient evidence exists to conclude that a delay in issuing a Permanent Cease and Desist Order will result in the public interest being irreparably harmed and that, therefore, an Emergency Temporary Cease and Desist Order should immediately be issued by the Commissioner.

In support of such order, the Commissioner's staff alleges the following facts:

1. Respondent Carancahua Resources, Inc. ("Carancahua") is a Texas corporation, incorporated on May 27, 1987. Incorporators were Allen L. Burditt, II as president, and Sarah-Maunee Starkie Burditt as vice president and director. No secretary or treasurer are listed with the Secretary of State, Austin, Texas. Carancahua has its office at 8303 Southwest Freeway, Suite 310, Houston, Texas 77074. Carancahua is an active corporation, according to Texas Secretary of State records as of March 27, 1990. Carancahua is engaged in the business of offering and selling undivided fractional interests in oil and gas leases located in Jefferson and San Patricio Counties in Texas.

2. Respondent Wellington Funding Corporation ("Wellington") is a Delaware corporation, qualified in the state of Texas on June 2, 1989. It's resident agent is Sarah Maunee Starkie. As of March 27, 1990, there were no officers designated.

3. Respondent Allen Lee Burditt II ("Burditt") is an individual whose date of birth is (withheld by Offie), and whose Social Security Number is (withheld by Offie). Burditt's last known address was (withheld by Offie).

4. Respondent Carlo Ugolini ("Ugolini") is an individual whose date of birth is (withheld by Offie), and whose Social Security Number is (withheld by Offie). Ugolini told investigators that he is vice president of Carancahua Resources, Inc., but records of the Secretary of State, Austin, Texas, do not list Ugolini as an officer of that corporation. Ugolini resides at (withheld by Offie), and acts as agent for Carancahua.

5. On August 8, 1989, Ronald Louis Kutter, DVM, (address withheld by Offie), purchased, through Ugolini, agent for Carancahua, a 1.325 fractional interest in an oil and gas lease identified as the Broussard #1, located in Jefferson County, Texas. Kutter issued his check for $5088 on August 10, 1989, in full payment of that share in the Broussard #1, which was to be drilled by September 15, 1989.

6. In subsequent correspondence with Carancahua, Kutter received letters signed by Allen L. Burditt II, President, on Wellington Funding Corporation letterhead, address 8303 Southwest Freeway, Suite 310, Houston, Texas 77074, offering him an opportunity to exchange his interest in the Broussard for the Curlee #1 prospect.

7. Upon request of the Office of the Securities Commissioner of Kansas, respondent Starkie, on March 22, 1990, provided the names and addresses of 22 Kansas residents who had invested in Texas oil wells operated by Carancahua. These investors included respondent Ugolini and his wife, Betty Ugolini, but did not include the name of Ronald Kutter, DVM, who had obtained a refund of this investment. By a later correspondence, Starkie provided the names of two additional Kansas investor who had since sold their interests to other individuals.

8. The securities offered for sale in Kansas are ostensibly undivided fractional interests in oil and gas leases and/or investment contracts in leases location in Jefferson and San Patricio Counties, Texas, by respondents Carancahua and Wellington, and are securities within the meaning of K.S.A. 17-1252j. Respondents Carancahua and Wellington are the issuers of said securities within the meaning of K.S.A. 17-1252e. The securities of said respondents have never been and are not now registered with the Securities Commissioner of the state of Kansas pursuant to either K.S.A.'s 17-1256, 17-1257, or 17-1258. Said securities are not exempted from registration by K.S.A. 17-1261, nor the transactions in which they may be sold exempted by K.S.A.'s 17-1262 or 17-1262a. The sale and offer for sale of said unregistered securities in Kansas is in violation of K.S.A. 17-1255.

9. None of the above named respondents have ever been or are now registered as agents or broker-dealers for the sale of securities in the state of Kansas, and are in violation thereof of K.S.A. 17-1254.

10. Such solicitation of investors and/or potential Kansas investors has the potential of causing irreparable harm to the investors. Continued violation of the Kansas Securities Act provides for criminal penalties, civil penalties, and administrative remedies which could cause Kansas residents to lose their investment since respondents might be rendered incapable of carrying out their agreements.

11. The solicitation of Kansas residents could continue to occur until some official action is taken.

IT IS, THEREFORE, ORDERED by the Commissioner that all respondents immediately cease and desist in the state of Kansas from soliciting offers to buy or making offers to sell, or effecting or transacting sales of the securities of Carancahua Resources, Inc., or the securities of any other person or issuer, or directly or indirectly aiding and assisting in the same or attempting to do the same, unless and until such securities have been registered for offer and sale pursuant to the provisions of the Kansas Securities Act, or unless and until such securities are specifically exempt from the registration requirements of the Kansas Securities Act, and unless and until respondents Allen Lee Burditt II, Sarah-Maunee Starkie, and Carlo Ugolini, and all other affiliates, employees, or contractors of the respondents who are to be engaged in such solicitations, offers and sales, first become registered as broker-dealers and their agents or as agents of the issuer pursuant to the provisions of the Kansas Securities Act, and unless and until respondents refrain from all the acts and practices alleged above which constitute violations or are about to constitute violations of the provisions of the Kansas Securities Act.

All respondents take notice that, if they wish to contest the issuance of this order or the facts as alleged herein, pursuant to K.S.A. 17-1266a and K.A.R. 81-11-5 they must file with the Commissioner at his office at 618 South Kansas Avenue, Second Floor, Topeka, Kansas 66603-3804, a written request for a hearing with 30 days of receiving this notice.

IT IS SO ORDERED BY THE COMMISSIONER.

Entered at Topeka, Kansas, this 2nd day of April, 1990.

/s/
M. Douglas Mays
Securities Commissioner
State of Kansas

NOTE:
Pursuant to K.S.A. 17-1267, any willful violation of an order duly entered or issues by the Securities Commissioner of Kansas is a criminal offense punishable as a felony under the provisions of the Kansas Securities Act.


END OF TEXT OF TEMPORARY CEASE AND DESIST ORDER



To: OFW who wrote (2094)12/22/1997 5:03:00 PM
From: OFW  Respond to of 4276
 
POST 3 OF 4: CIVIL JUDGMENT

Post 1 of 4 previously posted on this date on this SI thread is hereby incorporated into this post and all readers of this post should read Post 1 of 4 prior to reading this post. Readers are also advised that Post 2 of 4 previously posted on this date contains related information.

Again, I apologize for the length of this posting. It is my belief that any individual interested in this subject should take the time to read the entirety of this post. This post contains multiple documents and it is important that all documents be read in their entirety.

Filed December 30, 1991
Amended April 17, 1992


BEGINNING OF TEXT OF PLAINTIFF'S AMENDED PETITION DATED APRIL 17, 1992.


IN THE EIGHTEENTH JUDICIAL DISTRICT
DISTRICT COURT, SEDGWICK COUNTY, KANSAS
CIVIL DEPARTMENT

Case No. 91C-3673

GEORGE W. WAYMAN and
CONNIE J. WAYMAN, husband and wife,
Plaintiffs,
Vs.
ALLEN L. BURDITT, II, individually,
CARANCAHUA RESOURCES, INC.,
WELLINGTON FUNDING CORPORATION,
CHARTWELL HOLDINGS LTD., INC., and
BRISTOL OPERATING CO., INC.

AMENDED PETITION

COME NOW the plaintiffs, George W. Wayman and Connie J. Wayman, husband and wife, and for their causes for action against the defendants Allen L. Burditt II, Carancahua Resources, Inc., Wellington Funding Corporation, Chartwell Holdings Ltd., Inc., and Bristol Operating Company, Inc., allege and state:

PARTIES

1. The plaintiffs, George W. and Connie J. Wayman, husband and wife ("Waymans"), are residents of Sedgwick County, Kansas, and reside at (address withheld by Offie).
2. The defendant Allen L. Burditt II ("Burditt") is a resident of Houston, Texas, and resides at (address withheld by Offie).
3. The defendant Carancahua Resources, Inc. ("Carancahua"), is a Texas Corporation whose principal place of business is Houston, Texas, and last known address was 8303 Southwest Freeway, Suite 310, Houston, Texas 77074. Carancahua has forfeited its corporate status and has failed or refused to revive its right to do business. Carancahua never registered nor was authorized to do business in Kansas. Carancahua may be served by serving the Kansas Secretary of State or personally serving defendant Burditt who was an officer, director and shareholder of the corporation.
4. The defendant Wellington Funding Corporation ("Wellington" is a Texas corporation whose principal place of business is Houston, Texas, and last known address was 8303 Southwest Freeway, Suite 310, Houston, Texas 77074. Bristol (sic) has forfeited its corporate status and has failed or refused to revive its right to do business. Wellington never registered nor was authorized to do business in Kansas. Wellington may be served by serving the Kansas Secretary of State or by personally serving defendant Burditt who was an officer, director and shareholder of the corporation.
5. The defendant Chartwell Holdings Ltd., Inc. ("Chartwell") is a Texas corporation whose principal place of business is San Antonio, Texas. Chartwell's registered office is 2000 NCNB Plaza Convent, San Antonio, Texas 78205, and its registered agent for service of process at that address is Oliver H. Timmons (sic) III.
6. The defendant Bristol Operating Company, Inc. ("Bristol") is a Texas Corporation whose principal place of business if Stafford, Texas, and last known address was P.O. Box 1536, Stafford, Texas 77497-1536. Bristol's registered office is 2000 NCNB Plaza 300 Convent, San Antonio, Texas 78205, and its registered agent for service of process at that address is Oliver H. Timmons (sic) III.

STATEMENT OF FACTS

7. Beginning in October, 1989, defendant Burditt, individually and representing himself to be President of defendant Carancahua, and another agent, Carlo A. Ugolini ("Ugolini"), solicited the Waymans in Wichita to purchase working interests in the Davis #2 oil and gas well to be drilled in Jefferson County, Texas. Ugolini, on behalf of Burditt and Carancahua provided the Waymans with a Drilling Prospect brochure, Memorandum Documents, including a Participation Agreement, an estimate of the cost to drill and complete the well in the form of an Authority for Expenditure, and a video tape of Burditt discussing oil and gas prospects in Jefferson County, Texas. Burditt subsequently solicited the Waymans in Wichita from his offices in Texas by United States mail and telephone to purchase a working interests in the Davis #2 oil and gas well.
8. In communication with and documents furnished to the Waymans, Burditt and Carancahua misrepresented the potential for production of oil and/or gas from the Davis #2 well and overstated the cost to drill and complete the well.
9. In response to Burditt's solicitation and in reliance upon Burditt's misrepresentations, the Waymans agreed to purchase a 3.125% working interest in the Davis #2 well. The Waymans delivered their personal check made payable to Carancahua in the amount of $28,251.50, by mail to Burditt on or about December 30, 1989.
10. On or about February 14, 1990, in Wichita, the Waymans executed an Operating Agreement dated January 30, 1990 and a Participation Agreement with defendant Wellington regarding the Davis #2 well, naming defendant Wellington as the operator of the well. Burditt executed the Operating Agreement and the Participation Agreement as President of Wellington.
11. In response to Burditt's further solicitation and in reliance upon Burditt's misrepresentations, the Waymans agreed to purchase an additional 2.00% working interest in the Davis #2 well. The Waymans delivered their personal check made payable to Wellington in the amount of $28,000 by mail to Burditt on or about February 18, 1990. On or about February 26, 1990, in Wichita, the Waymans executed the Operating Agreement dated January 30, 1990 and a Participation Agreement with defendant Wellington regarding the Davis #2 well, naming defendant Wellington as the operator of the well. Burditt executed the Operating Agreement and the Participation Agreement as President of Wellington.
12. On July 3, 1990, defendant Chartwell assigned to the Waymans an undivided 5.125% working interest in the Davis #2 well. The terms of the written assignment stated that assignment was being made pursuant to the agreements referenced above.
13. In December 1990, Burditt and Wellington advised the Waymans the lease underlying the Davis #2 well was lost as a result of non-production and/or work over problems.
14. During 1990, Burditt and Wellington invoiced the Waymans for the costs to drill, complete and operate the Davis #2 well. These invoices contain material misrepresentations and false statements regarding the costs and expenses attributable to the Waymans interest in the well. During 1989 and 1990, the Waymans paid Burditt and Wellington a total of $92,890.25 for the drilling, completion and operation of the in the (sic) Davis #2 well, as a result of the original solicitation by Carancahua and Burditt and subsequent invoices from Wellington over Burditt's name. The Waymans have received not more than $4,495.83 in income from the well.
15. During June, 1990, Burditt solicited the Waymans in Wichita to purchase working interests in the Gerdes #1 oil and gas well to be drilled in San Patricio County, Texas. Burditt represented to the Waymans that he was the President of defendant Wellington. Burditt supplied specific information about the oil well to Waymans through the United States mail and personal telephone conversations.
16. In communications with and documents furnished to the Wayman's, Burditt and Wellington misrepresented the potential for production of oil and/or gas from the Gerdes #1 well and overstated the cost to drill and complete the well.
17. In response to Burditt's solicitation and in reliance upon Burditt's misrepresentations, the Waymans agreed to purchase a 6.00% working interest in the Gerdes #1 well. The Waymans delivered their personal check made payable to Wellington in the amount of $9,000.00 by mail to Burditt on or about June 16, 1990.
18. The Waymans subsequently executed a Participation Agreement and an Operating agreement dated June 30, 1990, regarding the Gerdes #1 well, naming defendant Wellington as the operator of the well. Burditt executed the Participation Agreement and the Operating Agreement as President of Wellington.
19. On October 15, 1990, defendant Chartwell assigned to the Waymans an undivided 6.00% working interest in the Gerdes #1 well. The terms of the written assignment stated that the assignment was being made pursuant to the agreements referenced above.
20. During 1990, Burditt, Wellington and Bristol invoiced the Waymans for the cost to drill, complete and operated (sic) the Gerdes #1 well. These invoices contain material misrepresentations and false statements regarding the costs and expenses attributable to the Waymans interest in the well. The Waymans paid Burditt, Wellington and Bristol a total of $12,562.21 for the drilling, completion and operation of the Gerdes #1 well, as a result of the original solicitation by Burditt and subsequent invoices from defendants Wellington and Bristol over Burditt's name. The Waymans have received no income from the well.
21. During December, 1990, the Waymans began inquiring about the validity of some of the invoices for the Davis #2 and the Gerdes #1 wells submitted by Burditt, Wellington and/or Bristol. The defendants were unwilling to provide a satisfactory response and refused the Wayman's requests to audit the defendant' financial records regarding the wells.
22. Upon inquiry with the Kansas Securities Commissioner in February 1991, the Waymans' learned that Burditt, Carancahua and Wellington were the subject of a Cease and Desist Order issued by the Commissioner on April 2, 1990, for sale in Kansas of unregistered securities, specifically interests in oil and gas leases in Jefferson and San Patricio Counties, Texas.
23. In March 1991, through telephone conversations and written correspondence with Burditt, the Waymans rescinded their purchase of any interest in the Davis #2 and the Gerdes #1 wells, tendered the working interests in the wells back to the defendants and demand the return of all moneys paid to Burditt, Carancahua, Wellington and Bristol. The Waymans' demands have been refused.

CLAIMS FOR RELIEF

COUNT 1

24. Waymans reallege and incorporate by reference the allegations contained in paragraphs 1 through 23 as though fully set forth herein.
25. The undivided fractional interests in oil and gas leases and/or investment contracts in the Davis #2 and Gerdes #1 wells located in Jefferson and San Patricio Counties, Texas, offered for sale in Kansas by defendants Burditt, Carancahua and Wellington are securities within the meaning of the Securities Act of 1933 (15 U.S. C. 77a, et. Seq.).
26. Defendants Burditt, Carancahua, and Wellington offered and sold interests in the Davis #2 and the Gerdes #1 wells to Waymans in Sedgwick County by the use of instruments of communication in interstate commerce or of the mails and by means of oral communications. These communications contained untrue statements of material facts and omissions of material facts necessary in order to make the statements, in light of the circumstances under which they were made.
27. The representations and omissions herein alleged were material and the Waymans relied on them in deciding to purchase the interests in the Davis #2 and the Gerdes #1 wells.
28. As a direct and proximate result of the representations and omissions herein alleged, Waymans purchased the interests in the Davis #2 and the Gerdes #1 wells which are now virtually worthless, and have been damaged in an amount in excess of $50,000.00.
29. For the foregoing reasons, the defendants Burditt, Carancahua and Wellington are in violation of Section 12(2) of the 1933 Act, 15 U.S.C. Section 771(2), and other applicable federal laws.

WHEREFORE, Waymans respectfully requests judgment in their favor and against the defendants Burditt, Carancahua and Wellington for recovery of all consideration paid for the interests in the Davis #2 and the Gerdes #1 wells, in the total amount of $105,452.46, less income received of not more than $4,495.83, together with prejudgment interest, costs, attorney fees, and such other and further relief as may be just and proper.

COUNT II

30. Waymans allege and incorporate by reference the allegations contained in paragraphs 1 through 29 as though fully set forth herein.
31. The undivided fractional interests in oil and gas leases and/or investment contracts in the Davis #2 and Gerdes #1 wells located in Jefferson and San Patricio Counties, Texas, offered for sale in Kansas by defendants Burditt, Carancahua and Wellington are securities within the meaning of K.S.A. 17-1252(j).
32. Defendants Burditt, Carancahua and Wellington are the issuers of said securities within the meaning of K.S.A. 17-1252(e). The securities of said defendants have never been and are not now registered with the Securities Commissioner of the State of Kansas pursuant to K.S.A.'s 17-1256,17-1257, or 17-1258. Said securities are not transactions in which they may be sold exempted by K.S.A.'s 17-1262 or 17-1262(a).
33. The sale and offer for sale of said unregistered securities in Kansas is in violation of K.S.A. 17-1255.
34. None of the above named defendants have ever been or are now registered as agents or broker-dealers for the sale of securities in the State of Kansas, and are in violation of K.S.A. 17-1254.

WHEREFORE, Waymans respectfully request judgment in their favor and against defendants Burditt, Carancahua and Wellington, for recovery of all consideration paid for the interests in the Davis #2 and Gerdes #1 wells, in the total amount of $105,452.46, less income received of not more than $4,495.83, together with interest at the rate of 15% from the date of payment, costs, reasonable attorneys' fees and such other and further relief as may be just and proper.

COUNT III

35. Waymans allege and incorporate by reference the allegations contained in paragraphs 1 through 34 as though fully set forth herein.
36. Burditt, Carancahua and Wellington offered and sold interests in the Davis #2 and Gerdes #1 wells to Waymans by means of untrue statements of fact and omissions, in the light of the circumstances under which they were made.
37. The misrepresentations and omissions alleged herein were material and the Waymans reasonably relied upon them in deciding to purchase the interests in the Davis #2 and Gerdes #1 wells.
38. Burditt, Carancahua and Wellington knew or should have known that the representations to Waymans regarding the interests in the Davis #2 and Gerdes #1 wells were false and materially misleading.
39. Waymans did not know of the untruths and omissions alleged herein.
40. Waymans justifiably and reasonably relied upon the representations of Burditt, Carancahua and Wellington in deciding to purchase the interests in the Davis #2 and Gerdes #1 wells, which are now virtually worthless. As a direct and proximate result, Waymans has been damaged in an amount in excess of $50,000.00.
41. For the foregoing reasons, Burditt, Carancahua and Wellington have violated the provisions of K.S.A. 17-1253, 17-1254, 17-1255 and 17-1268 and other applicable Kansas securities.

WHEREFORE, Waymans respectfully request judgment in their favor and against defendants Burditt, Carancahua and Wellington, for recovery of all consideration paid for the interests in the Davis #2 and Gerdes #1 wells, in the total amount of $105,452.46, less income received of not more than $4,495.83, together with interest at the rate of 15% from the date of payment, costs, reasonable attorneys' fees and such other and further relief as may be just and proper.

COUNT IV

42. Waymans allege and incorporate by reference the allegations contained in paragraphs 1 through 41 as though fully set forth herein.
43. The Waymans allege upon information and belief that the certain information from Burditt, Carancahua, Wellington and Chartwell regarding the Davis #2 and the Gerdes #1 wells contained untrue statements of material fact, which were known to be untrue by each defendant at the time the statements were made. The statements were made with the intent to deceive or were recklessly made with disregard for the truthfulness of the statements. The Waymans justifiably relied upon the statements and acted to their injury.
44. The Waymans are entitled to the full repayment of all money paid to the defendants due to the fraud of the defendants. In addition, the plaintiffs are entitled to such additional monetary damages, attorney fees, and interest, as provided by law.

WHEREFORE, the Waymans seek judgment against all the defendants, either individually or jointly and severally, for all moneys paid to the defendant in the total amount of $105,452.46, less income received of not more than $4,495.83, for the relief as prayed, and for such other relief as the court deems just and equitable.

COUNT V

45. Waymans allege and incorporate by reference the allegations contained in paragraphs 1 through 44 as though fully set forth herein.
46. The Waymans allege upon information and belief that the invoices from Burditt, Carancahua, Wellington and/or Bristol regarding costs and expenses attributable to the Waymans' interests in the Davis #2 and the Gerdes #1 wells contained certain untrue statements of material fact, which were known to be untrue by each of them at the time the statements were made. The statements were made with the intent to deceive or were recklessly made with disregard for the truthfulness of the statements. The Waymans justifiably relied upon the statement and acted to their injury.
47. The Waymans are entitled to the full repayment of all money paid to the defendants due to the fraud of the defendants. In addition, the plaintiffs are entitled to such additional monetary damages, attorney fees, and interest, as provided by law.

WHEREFORE, the Waymans seek judgment against all the defendants, either individually or jointly and severally, for all moneys paid to the defendant in the total amount of $105,452.46, less income received of not more than $4,495.83, for the relief as prayed, and for such other relief as the court deems just and equitable.

COUNT VI

48. Waymans allege and incorporate by reference the allegations contained in paragraphs 1 through 47 as though fully set forth herein.
49. The actions of defendants Burditt, Carancahua, Wellington, Chartwell and Bristol in agreeing to defraud Waymans, as fully set forth in Counts I through V of this petition, constitute an unlawful common law continuing conspiracy.
50. The untrue and misleading representations alleged in Count I through V were made by defendants willfully, wantonly and maliciously, for the purpose of inducing Waymans to purchase interests in the Davis #2 and Gerdes #1 wells and pay for costs and expenses falsely attributed to such interests. These defendants acted with outrageous disregard for, or with reckless indifference to, the right of Waymans.
51. As a result of the continuing conspiracy of the defendants, Waymans have been damaged in an amount in excess of $50,000.00.

WHEREFORE, Waymans respectfully request judgment in their favor and against defendants Burditt, Carancahua, Wellington, Chartwell and Bristol, either individually or jointly and severally, for recovery of all monies paid for, or costs and expenses attributed to, their interests in the Davis #2 and Gerdes #1 wells, in the amount of $105,452.46, less income received of not more than $4,495.83, prejudgment interest, costs, attorneys' fees and such other and further relief as may be just and proper.

Respectfully submitted,
/s/
Evan J. Olson, #9663
Hershberger, Patterson, Jones & Roth
100 South Main
Suite 600
Wichita, Kansas 67202-3779
(316) 263-7583
Attorneys for Plaintiffs


END OF TEXT OF PLAINTIFF'S AMENDED PETITION DATED APRIL 17, 1992.


On May 19, 1992, the defendants entered their answers to the above document. The first document submitted was an ORIGINAL ANSWER OF DEFENDANT submitted by Allen L. Burditt, Individually. The second document submitted was the ORIGINAL ANSWER OF DEFENDANTS submitted by the remaining named defendants. However, both documents were voided by the court in a letter to the attorney dated May 20, 1992. This action was taken by the court due to the fact that the attorney representing the defendants was not a member of the Bar of the State of Kansas at time the submissions were made to the court. That attorney, then affiliated with the firm of Russell, Hoffman & Reed, Incorporated was Oliver H. Timmins, III. Mr. Timmins is presently the President and a Director of Oilex, Inc.

On June 12, 1992, the Plaintiffs submitted to the court a MOTION FOR DEFAULT JUDGMENT which reads, in its entirety, as follows:


BEGINNING OF TEXT OF PLAINTIFFS MOTION FOR DEFAULT JUDGMENT


MOTION FOR DEFAULT JUDGMENT

Plaintiffs George W. Wayman and Connie J. Wayman move, pursuant to K.S.A. 60-255(a), for default judgment against defendants Allen L. Burditt, II; Carancahua Resources, Inc.; Wellington Funding Corporation; Chartwell Holdings Ltd., Inc.; and Bristol Operating Co., Inc. granting plaintiffs the relief prayed for in their Amended Petition herein.

In support of this motion, plaintiffs state and allege as follows:

1. Plaintiffs filed their original Petition herein on December 30, 1991.
2. On March 27, 1992, upon the motion of plaintiffs and for good cause shown, the Court entered an Order extending the time within which to serve all defendants until April 26, 1992.
3. On April 17, 1992, plaintiffs filed their Amended Petition as allowed by K.S.A. 60-215(a).
4. Defendant Bristol Operating Co., Inc. ("Bristol") was properly served on April 21, 1992 by serving its registered agent in the State of Texas, Oliver H. Timmins, III.
5. Defendant Chartwell Holdings Ltd., Inc. ("Chartwell") was properly served on April 21, 1992 by serving its registered agent in the State of Texas, Oliver H. Timmins, III.
6. Defendant Wellington Funding Corporation ("Wellington") was properly served with process on April 22, 1992, by serving the Kansas Secretary of State and on April 24, 1992, by serving Allen L. Burditt, II.
7. Defendant Carancahua Resources, Inc. ("Carancahua" was properly served with process on April 22, 1992, by serving the Kansas Secretary of State and on April 24, 1992, by serving Allen L. Burditt, II.
8. Defendant Allen L. Burditt, II, individually, was properly served with process in person on April 24, 1992.
9. On or about May 15, 1992, Burditt and Carancahua, Wellington, Chartwell and Bristol attempted to file answers to plaintiff's Amended Petition. Those answers were rejected by the Clerk of the District Court due to the fact that the attorney representing the defendants was neither admitted to practice in Kansas nor did he have local counsel in Kansas.
10. To date, none of the defendants have filed an answer or other response to the plaintiff's Amended Petition and, pursuant to K.S.A. 60-212, are in default.
11. Pursuant to the allegations of the Amended Petition, plaintiffs are entitled to a money judgment against Burditt, individually, Carancahua, Wellington, Chartwell and Bristol, jointly and severally, in the principal amount of $100,956.63, together with prejudgment interest thereon pursuant to K.S.A. 17-1268(a), in the amount of $35,387.14 through and including the date of judgment.
12. Pursuant to K.S.A. 17-1268(a), plaintiffs are also entitled to a money judgment against the defendants for their costs and for their reasonable attorney fees. To date, plaintiffs have incurred the sum of $757.67 in costs. To date, plaintiffs have incurred attorneys fees in the amount of $8,522.50.

WHEREFORE, plaintiffs George W. Wayman and Connie J. Wayman request that their motion for default judgment be sustained and that a judgment in the total amount of $145,623.92, as itemized hereinabove, be entered in favor of George W. Wayman and Connie J. Wayman against each of the defendants, jointly and severally.

Respectfully submitted,

Evan J. Olson, #9663
David E. Bengtson, #12184
Hershberger, Patterson, Jones and Roth
100 South Main
Suite 600
Wichita, Kansas 67202-3779
/s/
Attorneys for Plaintiffs
George W. Wayman and
Connie J. Wayman


END OF TEXT OF PLAINTIFFS MOTION FOR DEFAULT JUDGMENT


On June 19, 1992, the court ordered the following JOURNAL ENTRY OF DEFAULT JUDGMENT.


BEGINNING OF TEXT OF JOURNAL ENTRY OF DEFAULT JUDGMENT


JOURNAL ENTRY OF DEFAULT JUDGMENT

NOW on this 19th day of June, 1992, the above-captioned matter came before the Court upon the plaintiffs' Motion for Default Judgment. Plaintiffs George W. Wayman and Connie J. Wayman appeared by and through their counsel Evan J. Olson of Hershberger, Patterson, Jones & Roth. There were no other appearances.

Whereupon, the Court, having examined the pleadings and files in the above-captioned cause and having heard the statements of counsel, finds as follows:

1. That each of the defendants has been duly and legally served with process as provided by law, and such service is hereby approved by the Court.
2. That this Court has proper jurisdiction over the parties and the subject matter of this action and that venue is proper.
3. That defendants Allen L. Burditt, II, individually, Carancahua Resources, Inc., Wellington Funding Corporation, Chartwell Holdings Ltd., Inc., and Bristol Operating Company, Inc. have failed to answer or otherwise plead in response to plaintiffs' Amended Petition and are in default.
4. That, pursuant to the allegations of the Amended Petition, plaintiffs are entitled to a money judgment against defendants Allen L. Burditt, II, Carancahua Resources, Inc., Wellington Funding Corporation, Chartwell Holdings Ltd., Inc. and Bristol Operating Co., Inc., jointly and severally, in the principal amount of $100,956.63, together with prejudgment interest thereon pursuant to K.S.A. 17-1268(a) in the amount of $35,387.14.
5. That, pursuant to the provisions of K.S.A. 17-1268(a), plaintiffs are also entitled to a money judgment against each of the defendants for the costs of this action and for their attorneys' fees. Further, that plaintiffs have incurred costs in the amount of $757.67 and attorneys fees in the amount of $8,522.50 in connection with this action and that said amounts were reasonable and necessary.

NOW, THEREFORE, IT IS CONSIDERED, ORDERED, ADJUDGED AND DECREED that the findings hereinbefore made should be and hereby are made the orders of this Court.

IT IS FURTHER ORDERED that plaintiffs' Motion for Default Judgment should be and hereby is sustained and that plaintiffs George W. Wayman and Connie J. Wayman are granted a money judgment against defendants Allen L. Burditt, II, individually, Carancahua Resources, Inc., Wellington Funding Corporation, Chartwell Holdings Ltd., Inc., and Bristol Operating Company, Inc., jointly and severally, in the total amount of $145,623.92, as set forth above herein.

IT IS BY THE COURT SO ORDERED.

/s/
District Court Judge


END OF TEXT OF JOURNAL ENTRY OF DEFAULT JUDGMENT


On April 30, 1996, the Plaintiffs filed a SATISFACTION OF JUDGMENT with the Court as follows:


BEGINNING OF TEXT OF SATISFACTION OF JUDGMENT

Plaintiffs, George W. Wayman and Connie J. Wayman, hereby acknowledge the receipt from the defendants of an amount which plaintiffs will accept in full payment of the judgment and costs awarded to the plaintiff in the Journal Entry of Judgment, filed June 19, 1992 in the above-entitled action, and do hereby authorize the Clerk of the District Court, Sedgwick County, Kansas, to note satisfaction of the judgment of record.

Dated this 30th day of April, 1996.

T. Lynn Ward, No. 14609
Hershberger, Patterson, Jones & Roth, L.C.
100 South Main, Suite 600
Wichita, Kansas 67202
(316) 263-7583
/s/
Attorneys for Plaintiffs
George W. Wayman and
Connie J. Wayman


END OF TEXT OF SATISFACTION OF JUDGMENT



To: OFW who wrote (2094)12/22/1997 5:04:00 PM
From: OFW  Read Replies (5) | Respond to of 4276
 
POST 4 OF 4: CRIMINAL CONVICTION

Post 1 of 4 previously posted on this date on this SI thread is hereby incorporated into this post and all readers of this post should read Post 1 of 4 prior to reading this post. Readers are also advised that Posts 2 and 3 of 4 previously posted on this date contains related information.

Again, I apologize for the length of this posting. It is my belief that any individual interested in this subject should take the time to read the entirety of this post. This post contains multiple documents and it is important that all documents be read in their entirety.


BEGINNING OF TEXT OF WARRANT


IN THE EIGHTEENTH JUDICIAL DISTRICT
DISTRICT COURT, SEDGWICK COUNTY, KANSAS
CRIMINAL DEPARTMENT

Case No. 93CR1165

STATE OF KANSAS, EX REL
NOLA FOULSTON, DISTRICT ATTORNEY
EIGHTEENTH JUDICAL DISTRICT, Plaintiff
Vs.
ALLEN LEE BURDITT, II
W/M DOB: (Withheld by Offie)
SSN: (Withheld by Offie)

WARRANT

STATE OF KANSAS, SEDGWICK COUNTY, ss:
THE STATE OF KANSAS to any Law Enforcement Officer:

COUNT ONE
WHEREAS, Complaint/Information in writing, under oath, and/or an Affidavit or other evidence has been filed with the undersigned Judge of the District Court at Wichita, Sedgwick County, Kansas, and the undersigned Judge of the District Court finds that there is probable cause to believe that in the County of Sedgwick and State of Kansas, and on or between the 30th day of December, 1989, A.D., and from then on continuously until and including the 20th day of June, 1990, one ALLEN LEE BURDITT II did then and there, contrary to the statutes of the State of Kansas, unlawfully, feloniously, and willfully offer for sale or did sell securities; or intentionally aided, abetted, advised, hired, counseled, or procured others to unlawfully and willfully offer for sale or sell securities, to-wit: interest in oil and gas royalties or leases, at a time when such securities were not registered with the Office of the Securities Commissioner of Kansas under the provisions of the Kansas Securities Act;

COUNT TWO
And on or between the 30th day of December, 1989, A.D. and the 20th day of June, 1990, inclusive, one ALLEN LEE BURDITT II, did then and there, contrary to the statutes of the State of Kansas, unlawfully, feloniously, and willfully engaged in business as a broker/dealer or agent in connection with the sale of securities, to-wit: interests in oil and gas royalties or leases, at a time when he was not registered with the Office of the Securities Commissioner of Kansas under the provisions of the Kansas Securities Act;

COUNT THREE
And on or about the 20th day of June, 1990, A.D., one ALLEN LEE BURDITT II did then and there, contrary to the statutes of the State of Kansas, unlawfully, feloniously, willfully and knowingly violate an order issued under the Kansas Securities Act, to-wit: a Temporary Cease and Desist Order, dated April 2, 1990;

All of the said acts then and there committed and being contrary to the statutes in such cases made and provided and against the peace and dignity of the State of Kansas.

You are, therefore, commanded forthwith to arrest the said ALLEN LEE BURDITT, II, and bring him before a Judge of the District Court as provided by law.

The amount of the appearance bond to be required is $25,000.00.

Witness my hand in Wichita, Sedgwick County, Kansas, this 1st day of July, 1993.

/s/
David W. Kennedy
Judge of the District Court

Contrary to K.S.A. 17-1255, penalty section K.S.A. 17-1267 (Defined as Offering for Sale Unregistered Securities, an Unclassified Felony) Count One

Contrary to K.S.A. 17-1254, penalty section K.S.A. 17-1267 (Defined as Engaging in Business as a Broker-Dealer/Agent Without Having Been Registered, an Unclassified Felony) Count Two

Contrary to K.S.A. 17-1267 (Defined as Violation of A Cease and Desist Order, an Unclassified Felony) Count Three


END OF TEXT OF WARRANT



BEGINNING OF TEXT OF JOURNAL ENTRY OF JUDGMENT

IN THE EIGHTEENTH JUDICIAL DISTRICT
DISTRICT COURT, SEDGWICK COUNTY, KANSAS
CRIMINAL DEPARTMENT

Case No. 93CR1165
Division No. 13

THE STATE OF KANSAS, Plaintiff
Vs.
ALLEN LEE BURDITT, II, Defendant

JOURNAL ENTRY OF JUDGMENT

On this 29th day of July, 1993, this case comes on for pleas before The Honorable Richard Ballinger, Judge of the District Court. The State of Kansas appears by its attorney, John J. Kisner, Jr., Assistant District Attorney. The defendant appears in person and by his attorney, John E. Stang.

Thereupon, the State makes oral application to the Court to dismiss Count Three herein of the Information, the charge being Violation of a Cease and Desist Order, contrary to K.S.A 17-1267, which motion was by the Court sustained.

The defendant having heretofore been served a copy of the Information and having waived arraignment, further waives a jury trial on the Information as orally amended charging him with Offering for Sale Unregistered Securities, Count One, contrary to K.S.A. 17-1255, and Engaging in Business as a Broker-Dealer/Agent Without Having Been Registered, Count Two, contrary to K.S.A. 17-1254; is informed by the Court of the consequences of a plea of guilty and of the maximum penalty provided by law.

The defendant then enters a plea of guilty of Offering for Sale Unregistered Securities, Count One, and Engaging in Business as a Broker-Dealer/Agent Without Having Been Registered, Count Two.

The Court, after determining that the plea was voluntarily made with an understanding of the nature of the charge and the consequences of the plea, and that there is a factual basis for the plea, adjudges the defendant guilty of Offering for Sale Unregistered Securities, Count One, and Engaging in Business as a Broker-Dealer/Agent Without Having Been Registered, Count Two; thereupon the defendant waives a Pre-Sentence Investigation and the Court proceeds to sentencing.

The Court inquires of the defendant if he has any legal cause to show why judgment of sentence should not be pronounced against him; the defendant failing to show any such cause and none appearing, there being none, the Court proceeds to suspend of imposition of sentence pursuant to K.S.A. 21-4603, for a period of five (5) years, upon the following terms and conditions:

a) That the defendant shall report to this Court as directed by the Court Services Officer;
b) That the defendant shall remain within the area of the State of Texas unless permission to leave is first obtained from this Court;
c) That the defendant shall pay the costs of this action, within six (6) months, to the Clerk of this Court, including witness fees and miscellaneous expenses;
d) That the defendant shall pay restitution in the amount of $145,623.92; said restitution to be paid, within fifty-five (55) months, to the Clerk of this Court, who shall be and is hereby authorized and ordered to remit the collections to: George Wayman, (address withheld by Offie) or at such other address as the victim may subsequently advise the Clerk of this Court in writing.

IT IS SO ORDERED.

/s/
IRCHARD BALLINGER, JUDGE

APPROVED BY:
/s/
JOHN J. KISNER, JR. 12069
Assistant District Attorney

JOHN E. STANG
Attorney for Defendant


END OF TEXT FOR JOURNAL ENTRY OF JUDGMENT