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Congressional bill filed to fund litigation efforts in LLC investigation

A second lawsuit related to the business activities of the former Osage Limited Liability Company management is expected to be filed next week as the statute of limitations is due to expire.

Attorneys hired to investigate the LLC activities briefed the Osage Nation Congressional Commerce and Economic Development Committee on July 7 on the cases in executive session. The briefing comes as the Fourth ON Congress is scheduled to meet for its 7th special session starting Monday July 13.

During the special session, the Congress will consider several matters presented by the Executive Branch and bills and resolutions filed by Congress members, including an appropriation bill to fund the litigation expenses against the LLC going forward.

On July 7, Congresswoman Alice Buffalohead filed bill ONCA 15-64 requesting $100,000 “to carry out the purpose of funding expenses related to the civil actions filed or to be filed against former Osage LLC management and their co-conspirators for mismanagement and misappropriation of tribal funds.” 

The LLC litigation funding request comes after an initial lawsuit was filed in May in Oklahoma state court against former CEO Carol Leese, former LLC CFO Robert Petre and other business entities alleging securities fraud, common law fraud and negligent misrepresentation regarding a 2010 investment totaling more than $1 million.

Before the executive session, Tulsa-based attorney David Jorgenson, who is working on the LLC investigation with Osage-owned firm Shield Law Group, PLC, told the committee the investigation is targeting those investments that did not turn a profit, especially those where large sums of LLC money was paid out for investments.

One investment in question, for example, is the LLC investment of $800,000 in National Holdings Corp. that was announced in July 2010. Jorgenson said that company is now defunct and the return yielded no money.

Jorgenson also said the LLC investigation hit bumps with unknown email traffic unaccounted for between the LLC management and other parties regarding the business transactions. Also, efforts are still ongoing to locate all defendants, including Leese, in the first suit filed in May.

Check back to osagenews.org or Osage News Facebook page for any updates with the LLC investigation and Congressional special session when it convenes July 13. 


By

Benny Polacca


Original Publish Date: 2015-07-09 00:00:00

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Benny Polaccahttps://osagenews.org
Benny Polacca started at the Osage News in 2009 as a reporter and has covered various stories and events impacting the Osage Nation and Osage people. Polacca is part of the News team awarded the Native American Journalist Association’s Elias Boudinot Free Press Award in 2014 and other NAJA Media Awards and SPJ Oklahoma Pro Chapter awards for news coverage and photography. Polacca is an Arizona State University graduate and participated in the former American Indian Journalism Institute at the University of South Dakota. He previously worked at The Forum newspaper covering the Fargo, N.D. region as the weeknight reporter.
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