FARGO, N.D. (AP) - A company that sold investments in housing development for workers in the North Dakota oil patch is accused of running a fraud scheme that bilked investors out of millions of dollars.
The U.S. Securities and Exchange Commission on Tuesday filed a lawsuit against North Dakota Developments LLC and its owners, Robert Gavin and Daniel Hogan. North Dakota Securities Commissioner Karen Tyler also ordered the defendants to stop doing business.
Court documents show there were 980 stakeholders from 66 countries who invested more than $62 million in the housing developments known as man camps. Investors were sold interests in six different camps in western North Dakota and eastern Montana.
Tyler says the company broke state law by selling unregistered securities.
Federal court documents do not list lawyers for Gavin or Hogan.