Department of Financial Institutions
Judge Finds Young Defrauded Investors

Press Release Date:  Thursday, August 20, 2009  
Contact Information:  Kelly May, Public Information Officer
502-573-3390 x252
800-223-2579 x252

   FRANKFORT, KY (Aug. 20, 2009) – Franklin Circuit Court Judge Thomas Wingate issued an order finding that Anthony L. Young and Young Oil Corp. committed fraud and violated the Kentucky Securities Act.

   The order was issued in response to a bench trial held May 27-29 in Frankfort. The case against Young was brought by the Kentucky Department of Financial Institutions (DFI). Young Oil Corp., and its principal and affiliates, sold interests in oil and gas programs. From 1997 to 2008, the company raised nearly $20 million from investors through the sale of 57 partnerships. DFI took action in 2008 to shut down the Knob Lick, Ky., company and to appoint a receiver to take control of the company, freeze its assets and provide an accounting to the court.

   The investigation began after DFI examined Young Oil Corp. and had received investor complaints. Information indicated that Young was misusing and misappropriating investor funds and production revenues from his oil and gas operations. At the trial in late May, DFI presented evidence that Young and his company sold unregistered securities, and witnesses attested that they were misled about the profitability of the wells, the costs to drill and other material information about the company and its offerings.

   “The defendants provided materially misleading information, or omitted to state material information to investors, and engaged in fraudulent or deceptive practices in connection with the offer and sale of securities,” stated Wingate in his Findings of Fact. “… Mr. Young used his profiteering scheme to purchase a Lear Jet, an $86,000 Corvette, and various vacations to the Caribbean. Additionally, Mr. Young sponsored a racing company and lived a lavish lifestyle, all at the expense of misinformed investors.”

   The judge found that Young and Young Oil Corp. sold unregistered securities, misled investors, made untrue statements of fact and/or failed to disclose materials facts, and perpetrated fraud on investors. Both Young and his company are permanently enjoined from violating the Kentucky Securities Act. A hearing will be scheduled to determine a monetary judgment. The order is posted online at

   “We will not allow Kentucky to be a base for fraudulent securities operations. We are diligently working to protect investors and the integrity of our securities markets. At the same time, it is important for investors to research and understand their investments,” said DFI Commissioner Charles Vice.

   DFI also is awaiting the results of a contempt hearing regarding Young. On July 22, Wingate heard DFI’s separate motion for contempt against Young regarding funds that Young received but did not turn over to the receiver. Court orders of Dec. 29, 2008, and Feb. 23, 2009, freeze the assets of Young, ALY Farms LLC and Tenntucky Drilling Inc. and place the assets within the receivership estate. In its motion, DFI alleges Young received more than $25,000 from Barrett Oil Purchasing Inc. that was payable to the companies owned by Young, however he failed to provide these to the receiver as required by the order.

   Investors who wish to file a complaint about Young Oil Corp. or any suspected fraudulent investment activity may contact the DFI Securities Division at 800-223-2579 or visit

   Before investing in any securities product, it is a good idea to contact DFI to check out the license/registration and complaint history of both the product and the person selling it. For more information and links on investing, visit DFI’s Investment Help Web page at

   DFI is an agency in the Public Protection Cabinet. It supervises the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. DFI’s mission is to serve Kentucky residents and protect their financial interests by maintaining a stable financial industry, continuing effective and efficient regulatory oversight, promoting consumer confidence, and encouraging economic opportunities.