Posted Friday, May 1, 2009 10:32 AM | Contributed by Jeff
Wild West World founder Thomas Etheredge was taken into custody at the San Antonio airport late Wednesday afternoon on a Kansas warrant for investigation of 10 counts of securities fraud, according to officials at the Bexar County Jail, other law enforcement and airport officials.
Read more from The Wichita Eagle.
This doesn't sound good.
It doesn't sound like the guy had any intent to be dishonest, it just sounds like he's guilty of being a moron.
Of course, what can we say about investors who were satisfied with a chuck on the shoulder and a, "It'll be great, I promise!" kind of guarantee?
Etheredge made misrepresentations or failed to disclose material facts prior to obtaining more than $800,000 from private investors from February 2005 through March 2007.
Well, which was it? Misrepresentations or non-disclosed facts? There's a big difference between the two. The latter I hold the investors responsible for, at least in part.
Kansas law requires that investors must receive an accurate picture of a business's financial status before investing. Several investors told the state and The Eagle that Etheredge offered no prospectus or park balance sheets, characterizing the park only as a good investment.
Yeah, see that doesn't make any sense to me. I know Etheredge is responsible for providing the info. But as Jeff says, what kind of investors provide their money without that key information?
And, if it's part of the law to receive that kind of information before investing, why wouldn't the investors be held accountable legally, as well? They knew they didn't have the required material.
You know, this isn't just their loss. Isn't it fair to say that the entire community suffers at least a little when something like this happens?
Well it really would not surprise me if he's guilty. The greed of the rich never ceases to amaze me. However, I am always skeptical of charges brought by the FEDS. They are the masters of spin and twisting a persons words to fit the elements of a crime. You just never know. You could have an angry investor with friends in high places that got this ball rolling. I try to reserve judgment until all the facts are brought to light at trial.
Since I said it in the GL thread...what the heck: Bad decisions don't necessarily imply bad intent. That being said, between Tulsa and Wichita, something just ain't working for amusmenet parks in that region....
True enough. But I think in this case intent doesn't matter. The law says certain documents and business plans must be in place before accepting an investment and the claim is that those things weren't there.
Winston: Are you scared to leave the house? What causes you to mistrust everyone?
No, I don't mistrust everyone. Just everyone in the government.
And why is that?
Becuase the government can't be trusted, obviously. Just like the government can't possibly do anything as well as the private sector.
Get up to speed, dude.
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