360° Coverage : Colorado Based HEI Wins Decisively in Denver District Court...

Colorado Based HEI Wins Decisively in Denver District Court Court; Denies Colorado Securities Commission Attempt to Expand Regulatory Authority

Colorado Springs business practices validated by Denver District Court in suit with State Securities regulators.

Oct 21 2013, 3:34pm CDT | by PR.com

Colorado Based HEI Wins Decisively in Denver District Court Court; Denies Colorado Securities Commission Attempt to Expand Regulatory Authority
Photo Credit: PR.com

Colorado Springs, CO, October 21, 2013 --(PR.com)-- In a case being watched closely by securities regulators and lawyers alike, Colorado Springs based oil and gas exploration company, HEI Resources, Inc. (HEI), its President and CEO Reed Cagle, and its employees received a favorable judgment following a four-year long challenge from the Colorado Securities Commissioner. The Court’s decision validates HEI’s and Cagle’s business structure and practices.

In bringing the lawsuit, the State sought to expand its regulatory authority by designating interests in joint venture partnerships as securities, despite contrary rulings by a federal district court, the Colorado Securities Board, and a Colorado jury.

Following a seven day trial in which the Court heard from numerous experts and more than a dozen joint venture partners, the Honorable Michael A. Martinez issued a thoughtful, 33-page order outlining his factual findings in the case and his decision that joint venture interests offered by HEI are not securities.

“It’s unfortunate that I have spent the time, money, and emotion defending against these baseless claims, but I have an obligation to my employees and my partners to fight these claims and preserve the ability of my partners to continue to enjoy the benefits of direct participation programs,” said Cagle.

Among other allegations, the state alleged that investors in the company’s oil and gas exploration projects were elderly, uneducated and not capable of making wise investment decisions. Contrary to their depiction, HEI partners testified as to their wealth, education and business savvy. One partner described herself as a “smart and tough” businesswoman running a multi-property real estate business. Another partner was a former Wall Street financier who brought in many of his friends from major Wall Street titans to participate in partnerships alongside him.

Judge Martinez was ultimately unswayed by the State’s arguments, finding that, "There is no indication that HEI targeted any specific age or demographic group other than to establish that HEI actively sought out individuals that were wealthy, educated and sophisticated investors with sufficient business experience to exercise the significant partnership powers granted them under the joint venture agreements."

The Court found HEI’s partners to be educated, wealthy and experienced in business affairs, with many holding executive management positions or owning their own businesses. Based upon these facts, and dozens of others from the 16 witnesses that provided testimony at trial, Judge Martinez concluded the following:

"The persuasive and credible evidence in the record compels the court’s conclusion that the partners in the joint ventures were capable of intelligently exercising the partnership powers granted to them."

“Mr. Cagle has fought long and hard to protect his partners, to protect his employees, and to uphold his integrity and reputation,” stated Otto Hilbert, a senior partner of Robinson, Waters and O’Dorisio, who represented Cagle at trial. “His efforts have helped to keep general partnerships available in the industry and free from costly and unnecessary regulatory oversight.”

“Colorado is my home,” said Cagle. “I have raised my family here, and HEI supports the local economy, multiple charities, and provides jobs and support for dozens of families in Colorado. This ruling is a tremendous victory for us all.”

About HEI Resources, Inc. Cagle founded HEI Resources in 1997 for the acquisition, exploration and development of domestic oil and gas reserves, and based upon partner demand, has recently expanded into mining. Despite the inherent risks involved, the company has been at the forefront of providing direct participation opportunities, having sponsored more than 100 joint ventures in these combined industries. For more information, visit www.heipartners.com.

Contact Information:
Tuckahoe Strategies
Ramsey Poston
386-547-2608
Contact via Email
www.TuckahoeStrategies.com
@TuckahoeStrat

Read the full story here: http://www.pr.com/press-release/523194

Press Release Distributed by PR.com

Source: PR.com

 
 
 

blog comments powered by Disqus

Latest stories

School headmaster shot dead in Pakistan
Islamabad, Dec 4 (IANS) Unidentified gunmen Thursday killed the headmaster of a private school in Pakistan's Balochistan province.
 
 
Four more bodies recovered from sunken South Korean ship
Seoul, Dec 4 (IANS) Four more bodies were recovered Thursday from a sunken South Korean fishing ship in the Bering Sea, the foreign ministry here said.
 
 
Lesbian couple asked to desist in London restaurant
London, Dec 4 (IANS) A lesbian couple in a London restaurant was asked to desist by a staff member, who asked them to "stop what you are doing".
 
 
Oxford Dictionaries to add 1,000 new words
London, Dec 4 (IANS) 'Mamil' (middle-aged man in Lycra), 'silvertail' (a person who is socially prominent or who displays social aspirations) and 'crony capitalism' are among the 1,000 new words to be added to OxfordDictionaries.com, the free online dictionary, in its largest quarterly update so far.
 
 
 

Latest from the Network

Australian researcher discovers first artwork by early human
Sydney, Dec 4 (IANS) An Australian researcher has discovered what is believed to be the first artwork created by a human. The simple zigzag pattern found on a fossilized shell from the Indonesian island of Java has...
Read more on Celebrity Balla
 
Insects compete with rats to clear garbage
New York, Dec 4 (IANS) Insects play a very important role in cleaning up cities and they compete with other pests like rats and pigeons in their endeavour, a study has said. Scientists sampled arthropods - such as...
Read more on Business Balla
 
School headmaster shot dead in Pakistan
Islamabad, Dec 4 (IANS) Unidentified gunmen Thursday killed the headmaster of a private school in Pakistan's Balochistan province. Police officials said the armed men opened fire at the vehicle of Zahid Ali,...
Read more on Politics Balla
 
Four more bodies recovered from sunken South Korean ship
Seoul, Dec 4 (IANS) Four more bodies were recovered Thursday from a sunken South Korean fishing ship in the Bering Sea, the foreign ministry here said. This increased the toll to 16, including six South Koreans and 10...
Read more on Politics Balla
 
Lesbian couple asked to desist in London restaurant
London, Dec 4 (IANS) A lesbian couple in a London restaurant was asked to desist by a staff member, who asked them to "stop what you are doing". Lydia Cawson, 29, said that she and her girlfriend were asked by a staff...
Read more on Politics Balla
 
Oxford Dictionaries to add 1,000 new words
London, Dec 4 (IANS) 'Mamil' (middle-aged man in Lycra), 'silvertail' (a person who is socially prominent or who displays social aspirations) and 'crony capitalism' are among the 1,000 new words to be added to...
Read more on Celebrity Balla
 
Oceans play key role in global 'warming hiatus'
London, Dec 4 (IANS) Increased heat uptake across three oceans - North Atlantic, the Southern Ocean and Equatorial Pacific Ocean - is the likely cause of the 'warming hiatus' -- the current decade-long slowdown in...
Read more on Politics Balla
 
Novel imaging to identify if TB drugs are working
Washington, Dec 4 (IANS) Tuberculosis patients who are not cured of the infection can develop multi-drug resistant TB and have to take as many as six drugs for two years. Now, researchers at University of Pittsburgh...
Read more on Business Balla
 
PM makes first appointment to High Court of Australia
Canberra, Dec 4 (IANS) Prime Minister Tony Abbott's government Thursday appointed former Victorian Supreme Court judge Geoffrey Nettle as the next Justice of the High Court of Australia. Attorney General George...
Read more on Politics Balla
 
18 suspected militants killed in Pakistan airstrikes
Islamabad, Dec 4 (IANS) At least 18 suspected militants were killed Thursday in airstrikes conducted by Pakistan Air Force fighter jets in North Waziristan. According to officials, the airstrikes were conducted in...
Read more on Politics Balla