In the Matter of Miller Energy Resources, Inc., et al.
Admin. Proc. File No. 3-16729
In four separate orders, the Commission settled cease-and-desist proceedings (the “Orders”) that were instituted on August 6, 2015 against Miller Energy Resources, Inc. (“Miller Energy”), and four of its senior executives and officers, Paul W. Boyd, CPA (“Boyd”), David M. Hall (“Hall”), and Carlton W. Vogt, III, CPA (collectively, the “Respondents”). In the Orders, the Commission found that, the Respondents violated the federal securities laws by materially overstating the value of certain oil and gas assets acquired in Alaska on its financial statements beginning in the first quarter of fiscal year 2010. The Commission ordered Hall and Boyd to each pay a $125,000.00 civil money penalty to the Commission for transfer to the U.S. Treasury. The Commission further ordered Miller Energy to pay a $5,000,000.00 civil money penalty and that all funds paid (the “Fund”) will be held pending a decision whether the Commission, in its discretion, will seek to distribute the funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended or transfer the funds to the U.S. Treasury. The Commission ordered that payment could be satisfied through the Commission having an allowed general unsecured claim in Class 4 of the Miller Energy’s Joint Plan of Reorganization, Case No. 15-00236, pending in the United States Bankruptcy Court for the District of Alaska (the “Bankruptcy Case”), in the amount of $5,000,000.00 or by Miller Energy making payments as directed over the course of three years, starting within five business days of the termination of the Bankruptcy Case. See the Commission’s Orders: Release Nos. 33-10002, 33-10089, 33-10090, and 33-10091.
On January 28, 2016, the Bankruptcy Court entered an order granting the Commission’s allowed general unsecured claim in the amount of $5,000,000.00 (“Allowed Claim”). See the Bankruptcy Court’s Order.
The Fund consists of $120,000.00 received from the Bankruptcy Court on the Allowed Claim; all future monies received on the Allowed Claim will be added to the Fund.
On December 7, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP f/k/a Damasco & Associates LLP as the Tax Administrator of the Fund.
For more information, please contact the Commission:
Office of Distributions