Group sues former Naperville Man
Seven Rio Grande Investors sue Kelly Rogers and Carrie Rogers
Claims Fraud and Embezzlement
The Rio Grande Coal Mine group has issued a complaint; To Determine Discharge ability of Debt owed to the investor group. Seven investors filed the complaint to the United States Bankruptcy Court of Eastern Texas on October 1, 2009 against bankruptcy case No 09-42154. The group is asking the Trustees not to dismiss the debt owed to these investors as a result of an investment solicited by Kelly G Rogers of Frisco, TX. Interestingly, Carrie Rogers is also named in the complaint. To download complain, click on the link; Rio Grande Coal Mine, LLC.
In the statement of facts, we quote the following information directly from the lawsuit; Kelly Rogers solicited the Plaintiff's to make an investment in Rio Grande. The solicitation occurred using wire communications in interstate commerce. Kelly Rogers is not licensed under state or federal law to solicit investments and securities. This is a very interesting statement considering that Kelly Rogers has been sued by the SEC and permanently restrained and enjoins Rogers from a violating variety sections in the Security act of 1933. So it makes one wonder if Rogers has violated the consent of this final agreement? Read the SEC Consent of Defendant Kelly G Rogers for yourself and you decide.
To continue; the solicitation made by Kelly Rogers is a security as defined under federal law. Kelly Rogers misrepresented the investment in Rio Grande to the plaintiffs. After receiving the investments funds from the Plaintiffs, Kelly Rogers misappropriated and otherwise embezzled the investments made in Rio Grande by the Plaintiffs. It goes on; Kelly Rogers used the Plaintiffs investment funds from Rio Grande bank account to participate personally in a Ponzi scheme associated with TNT Office Supply and Travis Correll. Kelly Rogers misappropriated and embezzled Rio Grand funds from the Rio Grande bank account in order to personally participate in the Travis Correll Ponzi scheme. The Travis Correll Ponzi scheme paid money back to Kelly Rogers and Carrie Rogers. Carrie Rogers participated in spending the payments received from the Ponzi scheme and making deposits of the payments from the Ponzi scheme. The payments from the Ponzi scheme were deposited into a joint bank account in the name of Kelly Rogers and Carrie Rogers. Kelly Rogers and Carrie Rogers jointly received substantial sums of money in the payback scheme from the Travis Correll Ponzi scheme. Kelly Rogers and Carrie Rogers did not pay the money back to Rio Grande or to Rio Grande's investors, the Plaintiffs.
The Securities and Exchange Commission conducted an investigation of the Travis Correll Ponzi scheme and uncovered wire transfers authorized by Kelly Rogers transferring money from the Rio Grande bank account in Collin County, Texas to a bank account in the name TNT office-supply. These wire transfers by Kelly Rogers were not authorized by Plaintiffs and were not a lawful use of the funds and money belonging to Rio Grande. Kelly Rogers never disclosed to the Plaintiffs that he was using their investment money to participate personally in a Ponzi scheme, and Plaintiffs never authorized Kelly Rogers to use their money and their investment in Rio Grande to personally participate in the Travis Correll Ponzi scheme.
Kelly Rogers owed Plaintiffs a fiduciary duty. Kelly Rogers breached his fiduciary duty. Kelly Rogers embezzled, converted and misappropriated money and funds invested by Plaintiffs in Rio Grande for his personal benefit and for the benefit of Carrie Rogers. Carrie Rogers knowingly spent money from the joint bank account controlled by her and her husband, Kelly Rogers, which was money deposited from the Travis Correll Ponzi payments. Carrie Rogers endorsed checks from the Travis Correll Ponzi payments and deposited those checks in a bank account in Collin County, Texas that she had joint control over with her husband, Kelly Rogers. Kelly Rogers and Carrie Rogers engaged in a joint enterprise and civil conspiracy to defraud Plaintiffs of their investment in Rio Grande by taking money from Rio Grande, participating in the Travis Correll Ponzi scheme, and then depositing Ponzi payments from the Travis Correll Ponzi scheme in their joint bank account which both Kelly Rogers and Carrie Rogers had access to.
Additionally, Kelly Rogers and Carrie Rogers sold equipment belonging to Rio Grande. Kelly Rogers and Carrie Rogers retained the proceeds from the sale for their personal benefit and have failed and refused and continue to fail and refuse to pay the proceeds from the sale of that equipment to Plaintiffs. Kelly Rogers and Carrie Rogers used the proceeds from the sale of the equipment for their personal benefit. The equipment was owned by Rio Grande and was purchased with investment funds from the Plaintiffs.
The lawsuit summarizes the following counts; ONE-FRAUD: Kelly Rogers and Carrie Rogers made the misrepresentations of fact noted above with knowledge of their falsity, with the intent of defraud Plaintiffs, who justifiable relied upon those misrepresentations and were damaged by Rogers’s fraud. TWO-FRAUD WHILE ACTING IN A FIDUCIARY CAPACITY: Kelly Rogers was in a fiduciary relationship with Plaintiffs. Kelly Rogers committed the fraud noted above and made the material misrepresentations of fact with knowledge of their falsity and with the intent to defraud Plaintiffs who justifiably relied upon those misrepresentations and were damaged. THREE-EMBEZZLEMENT: Kelly Rogers and Carrie Rogers embezzled money from Plaintiffs. FOUR-NONDEBTOR SPOUCE: Carrie Rogers as a non-debtor spouse is a party so that the Court may determine the dischargebility of the debt pursuant to 11USCA 524(b)(2). FIVE-DAMAGES: The damages suffered by Plaintiffs are in excess of the minimum jurisdictional limits of the court. Debtor is also liable for punitive damages in an amount to be determined by the court.
The group is simply asking the court to disallow the automatic stay against the lawsuit that would essentially release Kelly Rogers and Carrie Rogers from any responsibility for their actions. More to come as information becomes public.