Department of Financial Institutions
Elizabethtown Man Charged with Defrauding 17 Individuals Out of Over $700,000

Press Release Date:  Friday, December 12, 2008  
Contact Information:  Kelly May, Public Information Officer
502-573-3390 ext. 252
800-223-2579 ext. 252
kelly.may@ky.gov
 


   The following press release was issued by the Office of the United States Attorney Western District of Kentucky. The Kentucky Department of Financial Institutions (DFI) assisted federal authorities in the investigation of this case, which led to the arrest of Ernest Cadick on 17 counts of wire fraud in connection with the sale of interests in oil and gas drilling programs through his company, Kingdom Oil. DFI's Securities Division previously took action against Ernest Cadick and Kingdom Oil, and those orders can be reviewed at http://www.kfi.ky.gov/legalresources/enforcementactions/securitiesea.htm.


* * * * *

   LOUISVILLE, KY - Ernest Cadick, age 50, of Elizabethtown, Ky., was arrested on Dec. 3, 2008, U.S. Attorney David L. Huber of the Western District of Kentucky announced today.  A federal grand jury in Louisville, Kentucky had returned an indictment on Dec. 1, 2008, charging Cadick with 17 counts of wire fraud.

   The Indictment charges that from 1994 through 2008 Cadick fraudulently solicited over $718,000 from 17 separate individuals.  The grand jury alleges that Cadick solicited the money under the pretenses of investing the money in, among other things, oil and gas ventures and overseas business ventures.   Cadick, however, did not invest the money and expended it for his personal benefit and gain.   The Indictment alleges that he received over $200,000 from one investor alone.   While he told this investor that the money would be invested in oil and gas ventures, the Indictment alleges he expended the money for his personal benefit and gain and never repaid the investment.           

   In the event of a conviction, the maximum potential penalties are 340 years imprisonment, a $4,250,000 fine, and supervised release for a period of three years.

   The case is being prosecuted by Assistant United States Attorney Bryan R. Calhoun and Joe Ansari, and it was investigated by the Federal Bureau of Investigation.              

   Cadick appeared today for arraignment before the United States Magistrate Judge in Louisville, Ky.

   The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.

-30-

Originally released Dec. 4, 2008
By U.S. Attorney David L. Huber of the Western District of Kentucky
www.usdoj.gov/usao/kyw
Contact: Dawn Masden
502-582-5911