Investors Call Oil Company a Shell Game

MINEOLA, N.Y. (CN) - Investors say they put $2 million into the Native American Energy Group, which was just a "corporate shell game" that promised "grandiose results," but stole their money and dissolved. "The fact is, as good conmen often do, the individual defendants have so obfuscated the facts that the plaintiffs do not have an actual knowledge of what stock or security they really own, in what company, and in what amounts, in regards to both numbers of shares and percentage ownership," according to the complaint in Nassau County Court.

Some of the more than 20 individual and corporate investors say they have been involved with the NAEG or one of its three subsidiaries since 2001 but never received any shares for their investments.

As NAEG Delaware is "usurping" the original companies - including NAEG and the NAEG Founders Holding Corp., which benefited from the plaintiffs' investments - the company is stealing the other companies' assets, according to the complaint.

The investors say that after they were promised "grandiose results," they were never given any shares or securities, never given a chance to review NAEG books and never invited to shareholder meetings.

The NAEG companies attracted investors by claiming they enjoyed overseas financing and were producing barrels of oil, but they had no foreign investors and never opened any oil rigs, according to the complaint.

Nevada revoked the charter of NAEG Nevada in 2007 and it ceased to be a legal entity the complaint states.

The investors seek punitive damages for fraud and breach of fiduciary duty, restitution, books and records a new board election.

They are represented by Brian Davis of Garden City, N.Y.

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