December 12, 2002

Contact: Lynn Kimbrough,

720-913-9025

GRAND JURY INDICTS IN OIL WELL SCAM

A Denver Grand Jury has indicted Charles Edward Pruitt (DOB: 2-25-56) on multiple charges, including racketeering in connection with an investment scheme involving oil and gas well stocks.  Pruitt is charged with violating the Colorado Organized Crime Control Act (F2), ten counts of securities fraud (F3), and ten counts of theft (F3 and F4).

The indictment alleges that Pruitt engaged in a pattern of racketeering through his business, Energy Group Company, Inc.  The indictment alleges that Pruitt solicited people to invest in oil and gas well interests that he didn’t own or have rights to, that he took investor money, and that he used it for his own personal benefit.

The indictment outlines charges involving 11 known victims, all of whom reside out of state and are more than 60 years old with losses totaling more than $200,000.

The indictment was handed down December 4, 2002 and was sealed until after Pruitt’s arrest on December 6, 2002.  Pruitt has been released from jail on $50,000 bond.  He has already been advised of the charges and is scheduled for arraignment on December 16, 2002 at 8:30 a.m. in Denver District Court, division 16.

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*The filing of a criminal charge is merely a formal accusation that an individual(s) committed a crime(s) under Colorado laws.  A defendant is presumed innocent until and unless proven guilty.  See Colo. RPC 3.6 ____________