MO Stops Alleged Biodiesel Scam

STREATOR, Ill. (DTN) -- Missouri Secretary of State Jason Kander issued a cease and desist order Friday, Nov. 7, against Boyd A. Ware of Centralia, Mo., and his company, Central Missouri Energy, LLC for an alleged biodiesel plant investment scam.

According to the order, Ware and Central Missouri Energy offered and sold securities without being registered with Kander's office, deceived investors with phony information and scammed Missourians out of nearly $200,000.

An investigation by Kander's office revealed that Ware founded CME in 2006 for the purpose of operating a biodiesel plant in Fulton, Mo. The order alleges CME began offering investments in an initial offering around August 2006 for a minimum investment of $25,000. Investors were told the funds would be used to construct a biodiesel facility and meet the working capital needs of the plant. However, according to the order, the biodiesel facility has never been built after more than seven years.

"Not only did this company illegally sell investments, they used deceptive tactics to lure investors into what they thought was a promising investment and withheld the truth about where funds truly went," Kander said. "Missouri investors should always contact my office before investing to help protect themselves from scams like these."

According to the order, at least four Missouri residents invested at least $182,500 with Ware for CME between 2006 and 2009. Ware allegedly led investors to falsely believe CME had secured funding guarantees from the U.S. Department of Agriculture, was engaged in partnership negotiations with companies in Illinois and Mexico to develop biodiesel and had sold 90% of the initial units offered, among other things.

Kander's office alleges Ware told investors CME was using "several reputable law firms" to review the business practices of CME. In fact, he was paying Mexican national Manuel Camargo, who claimed to be an attorney. Camargo's ex-wife, however, said he never graduated college and held no professional designations as an attorney in the U.S. or Mexico, and the investigation revealed no proof disputing her claims, Kander's office said.

According to the order, CME funds from investors were used to pay over $4,000 for Ware to make trips to Mexico, at least $22,000 for payments to Camargo's ex-wife, at least $150,000 to Camargo and over $50,000 in payments to a second company owned by Ware.

The order prohibits Ware and CME from offering or selling securities in Missouri and seeks restitution, penalties and the cost of the investigation.

(BM/AG)

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