Ex-CEO Loses Bid to Exit Energytec Ponzi Suit

Law360, New York (July 13, 2009, 12:00 AM EDT) -- A federal court has rejected an attempt by a former chief executive of Energytec Inc. to get claims in a consolidated securities action alleging that he was a key part of a Ponzi scheme dismissed.

In a Friday ruling, Judge Sam A. Lindsay of the U.S. District Court for the Northern District of Texas rejected the arguments of Frank W. Cole that the plaintiffs had failed to clear certain pleading hurdles.

The court ruled that the plaintiffs had sufficiently pled facts to support an inference that...
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