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The Arizona Corporation Commission has ordered Crow Tribal member Ted Hogan and his wife to pay $2.2 million to investors for cheating them in a phony energy development scheme.

In a recent statement, the commission said Hogan, also known as Ted Kills in the Fog, and his wife, Christina Damitio, and their company, Theodore J. Hogan and Associates, violated Arizona securities laws by selling unregistered securities to investors.

The commission found that Hogan and Damitio, who live in Sedona, pooled money from at least 32 investors, promising them an investment return from the development of oil and gas wells on the Crow Reservation in Montana.

Hogan is a member of the tribe and was once a tribal officer before being convicted of bank fraud in a corruption case in 1990.

The commission ordered the couple to pay $2,208,310 restitution and a $45,000 penalty. The Feb. 17 order came after a hearing last June 15 before an administrative law judge. Hogan and Damitio represented themselves. The judge ruled against the couple and the commission recently adopted his recommendations.

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The commission said Hogan claimed to have an agreement with the Crow Tribe to explore for oil and gas. The project, Hogan said, would earn at least $360 million within a year in commissions and royalties. He falsely assured investors that their money was safe because the project was bonded and guaranteed by the federal government, the commission said.

Rebecca Wilder, a commission spokeswoman, said restitution and penalties are due immediately and that the Hogan case has been referred to the Arizona attorney general's office for enforcement. The attorney general's collections enforcement division can seek payment through property seizures, wage garnishments and other tools, she said.

Two years ago, the Virginia State Corporation Commission found Hogan had violated similar securities laws and ordered him and his company to pay $95,000 in civil penalties and about $13,000 in investigative costs.  No payment has been made.

Hogan also has pleaded not guilty in a New Mexico criminal case in which he has been charged with 29 felonies including securities fraud, embezzlement and other crimes. A jury trial is set for Aug. 23.

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Contact Clair Johnson at cjohnson@billingsgazette.com or 657-1282.

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Federal Court, Yellowtone County Reporter

Federal court and county reporter for The Billings Gazette.