Office of Financial Institutions
JUPITER ENERGY LLC UNDER PERMANENT RESTRAINING ORDER
FRANKFORT, Ky. (Aug. 21, 2007) – Jupiter Energy LLC and its operators are now permanently barred from doing business in Kentucky unless they disclose their negative legal history in writing to potential customers.
The Kentucky Office of Financial Institutions (OFI) obtained a temporary restraining order against the company last year, which has now been made permanent by the Franklin Circuit Court.
The permanent injunction applies to Jupiter Energy LLC, manager Brian Rose and three other persons involved in the company. OFI pursued legal action against them and obtained the temporary order in June 2006.
“OFI is committed to aggressively fulfilling our responsibility of regulating the securities industry,” said OFI Executive Director Cordell Lawrence. “We will be vigilant in investigating and working to protect the citizens of Kentucky whenever our field examiners find potential violations of the securities laws or regulations.”
The 2006 restraining order prohibited Jupiter Energy and its operators from selling securities in Kentucky unless they disclosed in writing the negative legal history associated with any businesses run by members of the Rose family. Additionally, they were required to disclose that offices in Louisville, Ky., provided services, rather than the Tulsa, Okla., office listed by the company.
The permanent order names four individuals – Brian C. Rose, Jason T. Rose, Thomas N. Nelson and Dawn R. Nelson. Brian Rose is the registered agent and managing member of Jupiter Energy, which lists an address in Tulsa, Okla. Jason Rose, his brother, is also a member of the company. Thomas Nelson was Jupiter Energy’s vice president of development, and Dawn Nelson was vice president of investor relations. The Nelsons resigned their positions with the company earlier this year.
Some of the businesses the Rose family has been associated with in the past include Robo Enterprises of Bowling Green, Ky., which was ordered to stop selling securities in the 1990s, and EnTerra Energy, which was barred from selling securities after company officials agreed to a permanent injunction in July 2005. Those companies were operated by David Rose, who is the father of Brian and Jason Rose. David Rose violated the Securities Act by using unregistered agents to make sales and by failing to make full, complete and truthful disclosure in connection with the offers and sales.
The investigation into Jupiter Energy LLC began in late April 2006, when OFI received from the company a filing believed to contain inaccurate information. In addition, the filing indicated that the securities were to be sold through a broker-dealer that had applied to the National Association of Securities Dealers (NASD) for a change in its ownership. The NASD denied the firm’s application.
In order to ensure compliance with the final court order, Jupiter Energy is to post a $15,000 performance surety bond with the court for one year. If it violates the terms of the order during that time, Jupiter Energy would forfeit those funds to the state.
Both the 2006 restraining order and the 2007 final order can be found on OFI’s Web site, www.kfi.ky.gov, under Securities Enforcement Actions in Legal Resources.
OFI is an agency of the Department of Public Protection in the Environmental and Public Protection Cabinet. It licenses, charters and regulates the activities of state-chartered/licensed depository and nondepository financial institutions. OFI’s mission is to serve the public through effective and efficient regulation that promotes consumer confidence and economic growth.