Hundreds of individuals invested over $16 million in a fruitless gold mining venture organized by Nekekim Corporation and its CEO, Kenneth Carlton, according to a complaint filed by the Securities and Exchange Commission.
Nekekim and Carlton defrauded investors by stating that a special “complex ore” found at Nekekim’s mine site in Nevada contained gold deposits worth at least $1.7 billion, according to the complaint. Carlton provided investors with test results produced by two small labs that used unconventional methods to test the “complex ore” for gold to provide proof of the gold deposits, according to the SEC.
However, Carlton did not inform investors that other tests conducted by different firms determined that that the Nekekim mine had little to no gold and he also failed to disclose that the small labs’ reliability had been called into doubt by geologists and a government study, according to the complaint.
Carlton told investors that Nekekim had to develop a method to extract the gold from the “complex ore” found at the mine site, according to the complaint. Carlton falsely informed his investors that a “physicist” helped devise a confidential gold extraction technique that was licensed by Nekekim, however, the “physicist” did not possess any scientific training, according to the SEC.
Nekekim did not produce any mining revenue causing Carlton to promote a series of other supposedly promising extraction methods in frequent reports to shareholders, according to the complaint. Each of these methods failed, and Carlton’s reports grossly overstated Nekekim’s progress toward profitability while prompting shareholders to invest more money in the company.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of any losses in connection with Nekekim Corporation and Kenneth Carlton. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investing with Nekekim Corporation and Kenneth Carlton may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 504-523-2434.