SEC Charges Oil Company CEO as Source in Insider Trading Case

FOR IMMEDIATE RELEASE
2012-243

Washington, D.C., Nov. 28, 2012 — The Securities and Exchange Commission today announced charges against the former CEO of a Denver-based oil-and-gas company at the center of an insider trading scheme that the SEC began prosecuting last month.

According to the SEC’s complaint, the insider trading occurred in advance of Delta Petroleum Corporation’s public announcement that Beverly Hills-based private investment firm Tracinda had agreed to purchase a 35 percent stake in the company, which shot its stock value up by nearly 20 percent. The SEC initially charged insurance executive Michael Van Gilder for his illegal trading in the case, and is now additionally charging his source: Delta’s then-CEO Roger Parker.

Additional Materials
SEC Amended Complaint
http://www.sec.gov/litigation/complaints/2012/comp-pr2012-243.pdf

The SEC’s amended complaint alleges that Parker, who lives in Englewood, Colo., illegally tipped his close friend Van Gilder and at least one other friend with confidential information about Tracinda’s impending investment. Despite his duty as CEO to protect nonpublic information, Parker repeatedly communicated with Van Gilder following meetings and other developments as the deal progressed. Parker also illegally tipped information about Delta’s quarterly earnings. The insider trading in this case generated more than $890,000 in illicit profits.

“Parker was entrusted with highly confidential information, and he betrayed that trust to help line the pockets of his close friends,” said Sanjay Wadhwa, Deputy Chief of the SEC Enforcement Division’s Market Abuse Unit and Associate Director of the New York Regional Office. “Company officials who exploit their insider status must realize that they do so at the risk of inviting SEC scrutiny.”

According to the SEC’s amended complaint filed late yesterday in federal court in Denver, Parker tipped Van Gilder and another friend on several occasions in late November and December 2007 as the Tracinda investment was developing. Based on the inside information, Van Gilder and the other friend loaded up on Delta stock and highly speculative options contracts, and Van Gilder advised his relatives, his broker, and a co-worker to do the same.

The SEC alleges that the Tracinda announcement was not the only nonpublic information that Parker tipped to Van Gilder. In November 2007, Van Gilder received an e-mail from a mutual friend of Parker’s that included a news article expressing a negative view of Delta’s future prospects. After sending an e-mail to his broker indicating he might want to sell the Delta securities that he owned, Van Gilder called Parker three times that evening. Parker conveyed to Van Gilder confidential details about Delta’s third quarter 2007 earnings results that were to be announced later that week. Rather than sell his Delta stock, Van Gilder purchased an additional 1,250 shares and responded to the e-mail from the mutual friend by writing, “I had a dialogue with a friend, of whom you know. Do not sell this stock, rather buy more ... Delta will hit their numbers at this Thursday’s announcement.” When Delta announced its earnings, it reported production and revenue numbers above the company’s previously stated guidance.

The SEC’s amended complaint charges Parker and Van Gilder with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The amended complaint seeks a final judgment ordering them to disgorge their and their tippees’ ill-gotten gains plus prejudgment interest, ordering them to pay financial penalties, and permanently enjoining them from future violations of the above provisions of the federal securities laws. The SEC also seeks to prohibit Parker from acting as an officer or director of a public company.

The SEC’s investigation, which is continuing, has been conducted by members of the SEC’s Market Abuse Unit – Michael Holland and Joseph Sansone in New York and Jeffrey Oraker and Jay Scoggins in Denver – with substantial assistance from Neil Hendelman of the New York Regional Office. The SEC’s litigation is being handled by Thomas Krysa, who is Regional Trial Counsel in the Denver office, as well as Mr. Oraker and Mr. Holland.

The SEC thanks the U.S. Attorney offices in the Southern District of New York and the District of Colorado as well as the Federal Bureau of Investigation for their assistance in this matter.

# # #



http://www.sec.gov/news/press/2012/2012-243.htm

Hey step There is way too much deleting of posts.. I would like to private message you but you have me blocked.
Can you please unblock me? I will be nice.

Anyone following DPTR's assets into PARR?

DPTRQ: Bankruptcy PLAN effective. All shares cancelled:

http://www.otcbb.com/asp/dailylist_detail.asp?d=08/31/2012&mkt_ctg=NON-OTCBB

DPTR........I believe it will fly!.....I believe it will touch the sky!....I think about it every night and day!.....I will never sell this stock away!....hey R. Kelly should be happy someone remembers one of his hits right about now!......I am big on this one......it's gonna come back like afro's and skinny jeans!

Yes, it will!

There will be nothing left for shareholders.

"Low float" means absolutley nothing... and TA means even less when you're dealing with a stock in Bankruptcy.

=============================

Delta Petroleum Corporation Announces The Submission Of A Reorganization Plan Sponsorship Proposal

Delta Petroleum Corporation (DPTRQ.PK) announced today that it and certain of its subsidiaries (collectively, "Delta" or the "Company") have obtained U.S. Bankruptcy Judge Kevin J. Carey's approval of Delta's choice of Laramie Energy II, LLC ("Laramie") as the sponsor of a plan of reorganization to be proposed by Delta.

[....]

In addition to the 33.34% membership interest, Piceance Energy will distribute $75 million to Reorganized Delta. The $75 million in cash proceeds will be used to pay the Company's bankruptcy expenses and to repay secured debt. Reorganized Delta will retain the Company's interest in the Point Arguello unit of offshore California, other miscellaneous assets, and certain tax attributes. It is anticipated that the common stock of Reorganized Delta will be owned by the Company's creditors. The Company's current shareholders are not expected to receive any consideration under the reorganization plan as currently contemplated.

http://ih.advfn.com/p.php?pid=nmona&article=52358510

==================================

* I do not own nor have I never held shares of DPTRQ.

Low floater ...will explode!

Didn't expect this- not sure court would approve ??

05/08/2012

Delta Petroleum Plan Would Transfer Assets To A New Company

Delta Petroleum Corp. (DPTRQ) has selected Denver natural-gas company Laramie Energy II LLC to be the sponsor of its reorganization plan in a deal that would create a new company with some of Delta Petroleum's assets and give control of that company to Laramie.

Under the plan, the new company, called Piceance Energy LLC, would receive Delta Petroleum and Laramie's oil and gas wells and real estate in two Colorado counties, Mesa and Garfield. In exchange for these contributions, Laramie would have 67% equity in the new company and Delta will have 33%. The new board of directors would be comprised of four Laramie representatives and two Delta representatives.

Piceance would take out a $100 million loan in exchange for these assets and would pay Laramie $25 million and Delta Petroleum $75 million, according to court documents. Delta would use those funds to pay its secured and priority claims, and Laramie would pay off its loan from J.P. Morgan Chase & Co. (JPM).

If for any reason the deal falls apart, Laramie would be entitled to a $1.5 million breakup fee. Although still subject to court approval, the deal is slated to take effect July 31.

"Taking into account the overall circumstances ... the cash and equity consideration offered and other favorable non-financial aspects ... with regard to Delta's equity interest in a joint venture entity that includes assets of both Laramie and Delta, I agree that the debtors' business judgement that Laramie has offered a higher overall value than the other bidders is reasonable," Delta Petroleum's financial adviser said in documents filed with the U.S. Bankruptcy Court in Wilmington, Del.

Delta Petroleum has yet to file a Chapter 11 plan, so it is unclear how the assets will be distributed and who ultimately will hold the equity.

It is also unclear whether this plan preserves more than $1.1 billion in tax benefits Delta Petroleum had fought to save. But by entering this plan sponsorship agreement, Delta Petroleum could be preserving at least some of the tax benefits.

Federal tax rules allow companies to use their net operating losses to offset future tax bills, but those benefits can be lost if a company's ownership changes. The exception is when a company's ownership changes during a Chapter 11 process and shareholders and certain creditors own at least 50% of the stock in the new company. In those situations, the new company would get to keep the benefits.

In this deal, however, Delta Petroleum is maintaining 33% ownership, meaning the new company potentially could use a piece of the benefits.

Another stipulation in the law is that a change of ownership means that shareholders who had owned less than 5% of the old company become owners of more than 50% of the new company in less than three years.

It is not clear that this transaction would make for that kind of increase, because Delta Petroleum is selling all of its assets. All its oil and gas assets that aren't located in either of those two counties, including interests in its Point Arguello, Calif., leases on two offices, 5% interest in certain undrilled wells and one oil lease in Mesa County are not being transferred to the new company.

Lawyers for Delta Petroleum weren't available for comment Tuesday.

*I do not own shares of Delta Petroleum.

Fri Dec 16, 2011 11:34am EST

Delta Petroleum seeks court approval of $57.5 mln DIP financing

"The company will seek court approval of a debtor in possession financing facility of $57.5 million arranged by it to address longer term liquidity needs as it works through the bankruptcy process," Delta said in a statement on Friday.

http://www.reuters.com/article/2011/12/16/deltapetroleum-idUSL3E7NG0T120111216

*I do not own any of this stock and don't plan to at this point.

<more old 2008 news but good history>

business

What flows in Vegas . . .

Posted: 03/09/2008 01:00:00 AM MST By Andy Vuong
The Denver Postdenverpost.com

As part of the Delta deal, Kerkorian can appoint five of the company's 15 board members. He's filled two seats with the president of MGM and an executive from Tracinda.

http://www.denverpost.com/business/ci_8498559

*I do not own any of this stock and don't plan to at this point.

as of Dec. 16, 2011

Kerkorian blames Las Vegas stock promoter for $684 million loss [in Delta Petroleum]

Wednesday
7 December 2011
1:52 p.m.


http://www.vegasinc.com/news/2011/dec/07/kerkorian-blames-lv-stock-promoter-684-million-los/

left something important off my last post - the link

http://www.bloomberg.com/news/2011-12-16/delta-petroleum-files-for-chapter-11-bankruptcy-protection-1-.html

The case is In re Delta Petroleum Corp., 11-14006, U.S. Bankruptcy Court, District of Delaware (Wilmington).

A closer inspection to understand 'the story':

<below is old news but not previously posted news>

Law Delta Petroleum Files for Bankruptcy After Failed Sale

By Michael Bathon - Dec 16, 2011 10:09 AM PT

Delta Petroleum Corp. (DPTR), an oil and natural-gas explorer and developer whose largest shareholder is Kirk Kerkorian, sought bankruptcy protection after failing to find a buyer. Its shares plunged as much as 45 percent.

The Denver-based company listed $375.5 million in assets and $310.7 million in debt in Chapter 11 papers filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware.

Delta executives and advisers “unanimously determined that the Chapter 11 process would provide the opportunity for the best result for our creditors, shareholders, suppliers, employees and customers,” Chief Executive Officer Carl E. Lakey said today in a statement.

Delta predominately operates out of the Piceance Basin in the Rocky Mountain region of Colorado. Kerkorian, the billionaire founder of MGM Resorts International (MGM), owns a 33 percent stake in Delta, according to data compiled by Bloomberg.

Delta fell 33 percent to 22 cents at 12:51 New York time in Nasdaq Stock Market trading. The stock, which had lost about 96 percent of its value this year before today, dropped as low as 18 cents.

Delta will seek court approval to borrow as much as $57.5 million to help fund operations while in bankruptcy, according to the statement. Delta said it will have enough cash to pay court costs and maintain business operations in the short-term.

Restructuring Officer

The company said Nov. 9 it would probably have to restructure its debt after it wasn’t able to find a buyer willing to pay more than it owed or obtain alternative financing, according to a statement. Delta hired John T. Young of Conway MacKenzie Inc. as chief restructuring officer last month to explore its options.

Delta lost money in seven of the last eight quarters, according to data compiled by Bloomberg. The net loss was $429.4 million for the quarter ended Sept. 30.

Delta owes its 30 largest unsecured creditors about $275.4 million, according to court papers. U.S. Bank NA is the biggest creditor, as the indenture trustee for two groups of noteholders with debt totaling $267.7 million.

The company owes $152.2 million on 7 percent notes due in 2015 and $115.5 million on 3.75 percent notes due in 2037, according to court documents. The 7 percent notes traded at 90.4 cents on the dollar as of yesterday, and the 3.75 percent notes traded at 70 cents on the dollar as of Dec. 14, according to Trace, the bond-price reporting system of the Financial Industry Regulation Authority.

The case is In re Delta Petroleum Corp., 11-14006, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Michael Bathon in New York at mbathon@bloomberg.net

Thank you very much. Amr was my first look at a bankruptcy in action and the knee jerk reactions of traders. I believe i will leave them to those with larger cojones...again, thanks for the info.

I really hesitate to say rockythedog - The first rule of investing in Bankrupt (BK) companies is - US Bankruptcy Court is ALL about the rights & recovery of the creditors ...not the debtors' equity holders. Period. You have to start with that firmly planted in your mind on any bankrutcy.

Sales or auctions of assets by the debtor are typically not good for the shareholders. I don't know if this is a 363 sale...I haven't looked into this enough but it appears that's what this is.

363 sales can end up being a "fire sale" of the companies assets. Bidders are looking to cherry pick the best parts of the business at deeply discounted prices. The debtor knows that and is hoping someone includes the net operating losses (NOL) in their bid which would presumably make bids higher and include a plan with no change of ownership. That would be a good thing for legacy shareholders BUT I would be very cautious...color me skeptical that actually happens. If the debtor is considering a 363 sale the business probably does not have strategic value as a whole.

Again, I just don't know the entire picture. Good luck.

http://www.mcguirewoods.com/news-resources/publications/financial_services/jblp.15.02.pdf

I am new to bankruptcy plays. What does this mean for common share holders? Will shares be cancelled or will they remain intact?

Need I say More?

We have lift off!

If the court amends this it should go to $3 dolllars or more

will this going through 1 dollar mark?

I'm here DPTRQ is going to take off!!!!!

Dude, your stock is taking off. :)

Where is everyone????

The last 3 days have produced higher highs and higher lows. She's stuck at .20. Hopefully she can break that resistance and continue on.

IBox charts updated!

DELTA PETROLEUM CP (DPTRQ.PK)
-Other OTC
FINANCIALS SUBMITTED DECEMBER 31, 2011

0.19 Up 0.0020(1.06%) 3:54PM EST
Add to Portfolio
Income Statement Get Income Statement for:
View: Annual Data | Quarterly Data All numbers in thousands
Period Ending Sep 30, 2011 Jun 30, 2011 Mar 31, 2011 Dec 31, 2010
Total Revenue 16,546 11,541 23,056 100,206
Cost of Revenue 6,944 5,969 8,557 13,755
Gross Profit 9,602 5,572 14,499 86,451
Operating Expenses
Research Development - - - -
Selling General and Administrative 427,145 7,273 7,704 27,539
Non Recurring 53 233 43 42,633
Others 10,701 9,018 13,461 42,819

Total Operating Expenses - - - -
Operating Income or Loss (428,297) (10,952) (6,709) (26,540)
Income from Continuing Operations
Total Other Income/Expenses Net 4,971 3,481 (11,379) (5,153)
Earnings Before Interest And Taxes (423,246) (7,257) (18,088) (32,586)
Interest Expense 6,727 7,997 6,806 13,197
Income Before Tax (429,973) (15,254) (24,894) (45,783)
Income Tax Expense 65 (4,872) 239 (21)
Minority Interest (702) (1,497) 2,424 2,548

Net Income From Continuing Ops (430,038) (10,382) (25,133) (45,762)
Non-recurring Events
Discontinued Operations 1,307 10,917 (5,132) 9,488
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -
Net Income (429,433) (962) (27,841) (33,726)
Preferred Stock And Other Adjustments - - - -
Net Income Applicable To Common Shares (429,433) (962) (27,841) (33,726)

Currency in USD.

Financing of $57.000,000. $57 mil DIP (debtor in posession) financing.

DPTRQ is seeking debtor in possession financing of $57,000,000. 57 million dollars. This is a restructuring/reorganization of the company. DPTRQ is continuing its company business. GLTA

Any news??

We could use fresh Mods on DPTRQ~ who is Admin?

Cool

It's a paid chat room. Www.investorsunderground.com

Well worth the price of admission. Some of the best traders out there.

So where is this chat room?
Please send a link?

No but he's in that chat room.

You with Tim Sykes?

I was in Investors Live Chat and they alerted this. Lots of big money jumped in.

I dunno
Just showed up on my radar
Asking around
Doing dd
Lol

Column alert triggered on this pincher play Ninja~ Going higher imo! ;) http://investorshub.advfn.com/boards/board.aspx?board_id=9737

I do for a short term trade yah! :) You don't like this one Mafia?

Anybody know why is this thing moving??

Hmmm
So you like this?

PPO/ADX tight technical pinch starting to expand with Trix 3 bullish crossover, SAR flip, and 20DMA breakout... I picked up a starter today~ :)

why is this up?

so sad

DPTR delisted from Nasdaq to OTC Bulletin Board, effective tomorrow, December 28.

http://www.otcbb.com/asp/dailylist_detail.asp?d=12/27/2011&mkt_ctg=NON-OTCBB

That is really funny! One gem...." don't talk to me unless I talk to you. I'm saving my voice, I don't want to say hello to you sons of bitches." Looks like all the correspondence is going to be compiled into a book. Thanks for finding that.