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Saturday, June 22, 2024 | Back issues
Courthouse News Service Courthouse News Service

‘Inside Raiders’ Took $16 Million, Man Says

LAFAYETTE, LA. (CN) - After Omni Energy Services' CEO died in a plane crash, Dennis Scioto of Carlsbad, Calif., raided the company $16 million with his cohorts, Edward Colson II of Carlsbad, Richard Mager of San Diego, Richard White of Houston, and Cove Partners, plaintiff G. Darcy Klug claims in a colorfully written federal complaint.

"This case is about insider raiding - a more egregious and immoral gluttony of riches than insider trading," says Klug, who describes himself as a "corporate hero." "Insider raiding is defined in this securities fraud context as profiting by a self-interested board member, not merely by trading on inside information, but by creating inside information and realizing ridiculous gains, more so when the stock price is dropping, as opposed to when it is rising, by collaborating with short sellers. Insider raiding involves predatory selection of a wounded corporate victim, to make a handsome profit quickly on some of the company's stock, but to enjoy a feast of profits at the peril of the corporate pretty and its shareholders - much like a parasite gorges itself as the life is sucked out of its dying host."

The complaint alleges misdeeds in Omni stock, an "oil industry service company." See complaint.

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