| Show SEC Files Flies Charges Against Gas Companies i I I Rare Gas Resources Inc and other companies in the Commonwealth Re Resources sou r c e s Corp will face alleged fraud charges in In J U U. S. S District Court on August 13 It Jt was revealed this week A complaint was filed flIed against against ag ago the Utah Corporation Monday in U U. U S. S District Court by the Securities and Exchange Commission allegIng alleg alleg- alleging ing violations of ot securities registration provisions concerning con projected development development develop develop- ment mont of natural gas treatment treatment treatment treat treat- ment and helium and chemical chemical chemi chemi- cal recovery near Crescent Junction The action was filed against Commonwealth Re Resources s sou o u r c e s i Corp principals M M M. E. E Baird Joseph N. N and Bonnie Donnie W. W Anderson all of Salt Lake City The SEC sought an injunction Injunction tion restraining the defendants defend ants from alleged violations with regard to sale of stock In Geologic Enterprises Inc ne Paradox Enterprises Ltd Rare Gas Resources Inc Pe Pe- tro Minerals Fertilizer Co Certified Realty Investment Co Paradox Mining Co Apex Apex Ap- Ap ex tex Pipeline Transmission Inc i or Paradox Gas Chemical Chem ical leal Co Inc The SEC SEe alleged in Its complaint com coin plaint that the companies are under the common control with Commonwealth Resources Resources Res Corp and jointly engaged en In the projected development development devel devel- near Cres Crescent nt Junction Junction Junc tion i A hearing on a SEC motion motion motion mo mo- tion for preliminary Injunction tion has been set for Aug 13 i be ore e Judge A A. A Sherman Christensen The SEC in its complaint sought to enjoin the defendants defend ants for lor alleged violations of the registration and antifraud anti anti- fraud provisions of the Securities Se Se- Securities Act of 1933 and the fraud anti provisions of the Securities Exchange Act of 1934 in fn connection with the offer and sale of common stock of Commonwealth The SEC further rd Commonwealth made untrue statements to prospective Investors Investors In In- concerning value and profit potential of Commonwealth Commonwealth Common Common- wealth assets The complaint alleged that the omitted material mater ial lal facts In fn the offering of stock for tor sale including the present and reasonably anticipated anti trading price per persha persha persha sha the value of mining oil oU tid gas lease tease claims and the operating status of ot corporations corporations corporations cor cor- whose stock is claimed as an asset in 11 the issuer corporation It was alleged In the complaint com corn plaint that the Commonwealth Common wealth group made untrue statements of fact that Commonwealth Commonwealth Com Com- held stock In a group or complex of corporations cor which proposed to Jointly operate a venture that would Involve acquisition of a contract from the Department of Interior for tor or recovery of helium |
