Texas Energy Cos. Sue Board Members Over Embezzled Funds

Law360, Dallas (September 28, 2012, 5:32 PM EDT) -- Two energy companies filed suit in Texas state court Thursday, alleging three of their board members conspired to "pillage and plunder" the companies by fraudulently soliciting investments to develop oil interests, then diverting the money to other oil companies they own.

Black Strata LLC and MontCrest Energy Inc. accuse 10 individuals and six small businesses of being part of the scheme to launder money, defraud investors and steal assets from the companies.

The companies allege rogue board members breached their fiduciary duty to the companies by...
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