ED Magedson – Founder
Next Energy LLC4600 South Ulster street suite 1225 denver, Colorado USA
Next Energy LLC Jack Overstreet Deceptive business practices fraud denver, Colorado
The business had 74 oil and gas leases executed by more than 50 different farmers in Edwards County, Illinois. These farmers were given phony 90 day bank drafts (by my Dad and I) for their leasing and were told they would be paid before the 90 days ran on the drafts.
Many were told they would be paid within a week or two. Most were told there was no need to deposit the bank drafts because the business would be mailing them a check. These oil and gas leases covered about 10,000 acres and the bank drafts given to the farmers totaled about $1,700,000.00. The farmers have not been paid in more than six months but the leases they signed have been filed in the Edwards County land records and mortgaged to Heartland Bank of Little Rock, Arkansas. More than 8 landmen who worked to acquire the leases and ran title on the 10,000 have not been paid in
more than six months. Five landmen have filed liens against the nonpaid leases for a total of about $200,000.00. Another four landmen are owed about another $200,00.00.
Many of the landowners/farmers are elderly and I consider this fraud and usury when looking at the totality of the circumstances. The business sent out letters to these landowners/farmers and used my Dad’s good name in the mail outs before this leasing occurred. I consider that mail fraud. One of those letter is included.
I filed a similar Complaint with the Illinois AG Consumer Division and Joe Kost is the Deputy AG who can be reached at 618-529-6415. That office has received more than 30 Complaints by wronged landowners/farmers.
It appears that filing the oil and gas leases in the land records shows an intent to defraud. Then
the mortgaging of those non paid leases furthers the fraud. This is unheard of within the oil and gas
business and should not be allowed to go unpunished. It is slander of title on a large scale. The bank should not be allowed to accept non paid leases as a a security under a mortgage. The mortgage is for $10, 500,000.00.
This same company and bank has obtained a default judgment in Saline County against absentee mineral owners pursuant to the Severed Mineral Act in Illinois and based on other deceptive business practices by this business, it is assumed that the provisions of the Severed Mineral Act regarding deposit of monies into a federally insured depository with an office located in the County where the minerals are located was not likely complied with. I have located one of these landowners in only about 20 minutes of searching. The manager of Next Energy has a brother that is a Judge in a nearby county and as such it is believed the business used this political connection to obtain said judgment with use of the mortgage as funds which should be held pursuant to the said Act.
It looks like a new type of scam where a business holds 10,000 acres under lease with little or no investment. Then when another company drills a well either under a tract wrongfully held or even near a tract wrongfully held, those leases wrongfully held realize and substantial increase in value and
depending on the type well made, could be worth a fortune. Then the wrongful holder could easily
obtain funding to pay those wrongfully filed leases based on the projection of the well made near or under the wrongfully held tract.
This business did not buy an option to lease. It actually had oil and gas lease executed by
the landowners/farmers so that it could file these in the land records. This should not be allowed to continue nor go without punishment.
I have filed complaints with numerous governmental agencies and examiners with the Federal Reserve are investigating the Bank’s mortgaging of non paid leases. The person in charge of that investigation is Carl Miller with the Saint Louis Federal Reserve 314-444-8734.
This report was posted on Ripoff Report on 04/29/2013 02:22 PM and is a permanent record located here: http://www.ripoffreport.com/reports/next-energy-llc/denver-colorado-80237/next-energy-llc-jack-overstreet-deceptive-business-practices-fraud-denver-colorado-1047098. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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