Archived Story

Company ordered to pay restitution to investors
Posted on Aug. 7
By the Associated Press

HELENA - An administrative hearing examiner has ordered a Tennessee-based oil and gas development company accused of defrauding Montana investors to pay more than $652,000 in fines and restitution.

Montana State Auditor John Morrison had previously ordered Mid-America Energy Inc. to cease operations after Missoula residents invested about $120,000 in the company.

Morrison's office says Mid-America, its president, Gary Milby, and its operations manager, Clinton Goff, promised investors "incredible returns," including a 100 percent return on investments in 12 months and large dividend checks.

In a recent ruling, hearing examiner Michael Rieley found that Mid-America wasn't properly registered or licensed in Montana, and fraudulently induced Montanans to invest. He ordered the company to pay $147,500 in restitution, and $505,000 in fines.

On the Net: Montana state auditor's office, http://sao.mt.gov/
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