David G. Rose, Operator of Oil and Gas Investment Businesses, Pleads Guilty to Tax Evasion and Defrauding Investors in Oil and Gas Development Projects

LOUISVILLE, KY—David G. Rose, age 58, pleaded guilty to tax evasion and defrauding investors in two oil and gas well development projects he promoted through enTerra Energy, LLC, Acting U.S. Attorney Candace G. Hill announced today.

Rose admitted to willfully evading payment of taxes due and owing by him for tax years 2000 and 2001, by concealing income and assets he owned and controlled through a series of acts of evasion, including titling vehicles he purchased and owned in the names of acquaintances and diverting monies from companies such as enTerra Energy to acquaintances. Additionally, Rose admitted to causing investors in two oil and gas well projects promoted by enTerra Energy to be told false statements in order to induce these individuals to invest monies in these two projects, including the false statement that enTerra Energy, L.L.C. had entered into joint venture and partnership agreements with major oil companies, such as Citgo Petroleum Company, Samson International, Hunt Oil, and Texaco, in developing the oil and gas wells which comprise the two projects. In truth and in fact, no such joint venture or partnership agreements ever existed between these major oil companies and enTerra Energy, L.L.C.

The maximum potential penalties are 425 years’ imprisonment, $5,500,000 in fines, and supervised release for a period of three years.

The case is being prosecuted by Assistant United States Attorney James R. Lesousky, Jr., and it was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.

Rose is scheduled to be sentenced on before the Chief United States District Judge Thomas B. Russell on the 16th day of November 2009, at 12:00 p.m., in Louisville, Kentucky.