Investor Alert > Dakota Plains Holdings & Ryan Gilbertson— Alleged Fraudulent Stock Scheme Charges

Posted May 11, 2018

by Alan Rosca

Dakota Plains Holdings & Ryan Gilbertson— Alleged Fraudulent Stock Scheme Charges

Ryan Gilbertson & Dakota Plains Holdings Allegedly Operated a Stock Scheme Consisting of Bonus Payments Exceeding $30 Million

Ryan Gilbertson, 41, and of Delano, Minnesota, & Dakota Plains Holdings allegedly executed a stock scheme which purportedly involved bonus payments of over $30 million, according to SEC Documents currently under review by attorney Alan Rosca.

Attorney Alan Rosca, of the RoscaLaw LLC firm, is investigating activity related to Dakota Plains Holdings & Co-Founder Ryan Gilbertson’s alleged stock scheme. Investors who believe they may have lost money in activity related to Dakota Plains Holdings & Co-Founder Ryan Gilbertson’s alleged stock scheme are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

Gilbertson allegedly violated multiple federal securities laws in connection with Dakota Plains’ public offering, according to the aforementioned Complaint.

Ryan Gilbertson, is also reportedly facing 13 counts of wire fraud disseminating from an alleged stock manipulation scheme that took place after Dakota Plains went public in 2012, the Complaint states. Gilbertson was also charged by a federal grand jury in Minnesota with 13 counts of wire fraud, according to reports from Minnesota.

Gilbertson also allegedly violated multiple federal securities laws in connection with Dakota Plains’ public offering, the SEC reports.

Gilbertson and Reger Allegedly Ran Dakota Holdings in Secret & Allegedly Issued Notes to Gilbertson & Reger with Lavish Terms

Michael Reger co-founded Dakota Plains back in 2008, and also made an agreement to pay nearly $8 million after settling separate SEC claims related to Dakota Plains, according to the aforementioned SEC Complaint under review by Alan Rosca. It should also be noted that Reger neither admitted nor denied the SEC’s findings.

Gilbertson and Reger became famous for their part with Northern Oil & Gas, a publicly owned company that holds oil leases in North Dakota and based in Wayzata, according to reports from North Dakota.

Ryan Gilbertson and Michael Reger allegedly installed their own fathers as figurehead executives to Operate Dakota Plains, according to SEC Documents. In reality, Gilbertson and Reger allegedly ran the Dakota Plains in secrecy, said SEC Documents note.

Dakota allegedly issued notes to Gilbertson and Reger with benevolent terms which included bonus payments which were based on the price of Dakota Plains stock during its first 20 days of trading, the SEC Documents report.

The SEC Documents then detail how Gilbertson, a major Dakota Plains shareholder, allegedly personally bought $3 million of the notes, instruments which carried a 12 percent interest rate.

Gilbertson and other holders of Dakota notes would then allegedly get bonuses if Dakota Plains’ average stock price went above $2.50 per share, according to SEC Documents. Therefore, as the stock rose, so did the bonuses, and Dakota Plains‘ stock shot up to $12 in the first few weeks of trading, but then tapered off, the SEC states.

Securities Lawyer Investigating

The RoscaLaw firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Dakota Plains Holdings & Co-Founder Ryan Gilbertson’s alleged stock scheme. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions, and has helped recover tens of millions of dollars on behalf of investors.

Investors who believe they lost money as a result of Dakota Plains Holdings & Co-Founder Ryan Gilbertson’s alleged stock scheme may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.

DISCLAIMER

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.

If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options.

How to contact us?

We can also do a Zoom call to discuss your matter.