2003
On December 17, 2003, Stuart R. Cole of Dallas, Texas, was indicted by a U.S. District Court Grand Jury for the Northern District of Texas, Dallas Division, for four counts of securities fraud, three counts of mail fraud, one count of wire fraud, sixteen counts of interstate transportation of money taken by fraud, one count of illegal monetary transactions, and two counts of money laundering. The allegations are based on Mr. Cole's activities as president and owner of PetroQuest Development, Inc. ( "PetroQuest "), through which Mr. Cole and his sales agents sold interests in oil and gas wells in the Powder River Basin area in Wyoming. The indictment alleges that Mr. Cole oversold and re-sold eight wells in which PetroQuest had an interest and that Mr. Cole diverted investor funds for his own use and the use of others. The indictment further alleges that Mr. Cole sold interests in 4 well offerings, but failed to drill any wells with the funds invested in those programs, and instead, diverted investor funds to his own personal use and the use of others.