Crow Tribal member Ted Hogan, awaiting trial in New Mexico on criminal racketeering charges, is facing new problems, this time in Arizona.
Arizona securities officials recently filed a civil case against Hogan accusing him and his wife, Christina L. Damitio, and their company, Theodore J. Hogan and Associates, of violating securities laws.
The case, filed Dec. 8 by the Securities Division of the Arizona Corporation Commission, accuses Hogan and Damitio of fraud by misleading investors about their plan to develop minerals on the Crow Reservation in Montana.
The Arizona case is the first time Damitio has been charged in the alleged scheme.
Hogan, 64, lives in Sedona, Ariz., where he used to own a travel company and gave spiritual talks using the name Ted Kills In The Fog. A former Crow Tribe official, Hogan was convicted in 1990 of bank fraud in a tribal corruption case and was sentenced to two years in federal prison.
Hogan and three others were arrested in May on the New Mexico charges. Hogan pleaded not guilty to 29 felony counts including securities fraud, embezzlement, forgery and conspiracy. A jury trial is set for May 10. Hogan was released from jail in Sandoval County in August after posting a $100,000 bond.
Hogan declined to comment on the Arizona charges.
The Arizona case said Hogan and his company raised $1.9 million or more from at least 32 investors.
Since at least 2001, Hogan and his company have sought investors to develop minerals on the Crow Reservation. Hogan claimed that he would earn as much as $360 million “over the next six months to one year” in commissions and royalties, case documents said, and investors were to share in the gains.
The agreement between Hogan and the investors was basically the same, but the amount of return each was promised differed, documents said. No investor has received a return on principal.
Hogan also misrepresented to investors that work had started on the Crow Reservation, that the project was moving forward or near completion when, in fact, it had not begun.
In 2005, Damitio said on a residential loan application that she was vice president for energy development with Hogan & Associates and earned $19,300 a month salary, documents said. In another residential loan application seven months later, Damitio said she was vice president of Hogan & Associates and had a monthly salary of $24,200.
“The main source of money in the Hogan & Associates bank accounts was from investors,” the documents said.
Rebecca Wilder, a spokeswoman for the Arizona Corporation Commission, said Hogan and Damitio have 10 business days to respond and to request a hearing before an administrative law judge. After a hearing, the judge makes recommendations to the commissioners. The commissioners can approve or amend an order.
The Securities Division is seeking administrative penalties of a maximum $5,000 per violation and restitution.
In 2008, Hogan was found to have violated securities laws in Virginia after an investor there filed a complaint against him. The Virginia State Corporation Commission ordered Hogan and his company to pay $95,000 in civil penalties plus $13,117 for the cost of the investigation. It is unclear whether Hogan has complied.