Jul 1

Blake Lang Cummings, of Lucas, Texas, was sentenced to five years in prison and ordered to pay restitution of $50,219,049.00 to defrauded investors. Cummings previously pled guilty to conspiracy to commit securities fraud on July 31, 2007, in the U.S. District Court, Eastern District of Texas, Sherman Division, Cause No. 4:07CR142. Beginning in May 2002 and continuing through July 2005, Cummings acted as a sales agent for Americana Oil & Gas Corp., Ameri-Q Energy, Inc., and Prairie Resources, Inc., which raised in excess of $50,219,049 from investors. Investors directed funds to the companies with the expectation that oil and gas programs would be drilled and completed as proposed in a particular program offering brochure and understood returns received on their investment to be derived from oil and gas production from their program wells. Cummings misrepresented that wells had been drilled when in truth and in fact they had not been drilled, that wells were producing oil and gas when they were not producing oil or gas, that investor returns were derived from well production when they were actually derived from other sources, and that investor funds were used for costs associated with a well program when they were used for other purposes.