June 2, 2007
How not to hide from your investors
Gary Milby is a nashville "oilman" who was running an investment scam on people. He dropped from sight only to resurface on a TV show. From The Tennessean:Angry investors find elusive oilman on MTV
Suit here follows 'Sweet 16' show
Not long after entrusting millions of dollars to a former Nashville-area oilman with wells in Kentucky, the investors started asking questions: Where was the oil? Where was their money? And where was the oilman?
The investors think they got some answers on an episode of My Super Sweet 16, an MTV reality show about spoiled rich kids and their outrageously opulent birthday parties.
They saw Gary Milby, who once lived in Gallatin and had his business headquarters in nearby Mt. Juliet, giving his daughter a private helicopter ride, a new BMW and a shopping spree.
Cameras followed Milby to his Kentucky oil fields, where his daughter, Ariel, exclaimed, "I love oil! Oil means shoes and cars and purses!" Pointing to a drill, Milby told her, "This one here will make over 20 barrels a day."
About 60 investors who say they heard similar promises from Milby are suing him in federal court in Nashville, accusing Milby of defrauding them of at least $4.5 million. None of the investors listed in court records is from Tennessee.
All told, Milby raised $20 million to $25 million from investors over nearly two years, the investors' lawyer estimates — even though officials in several states had demanded Milby stop selling securities in his Tennessee oil and gas companies. It appears no criminal charges have been filed against him.
Comments
Post a comment