Diversified Energy Group, Inc. and Principal Officers Havanich, DellaSala, and Welch Allegedly Raised $17.4 Million through Fraudulent and Unregistered Stock and Bond Offerings

Ponzi scheme attorneys

Between 2006 and 2012, Diversified Energy Group, Inc. and its principal officers, Havanich, DellaSala, and Welch, raised at least $17.4 million from approximately 440 investors nationwide through a series of fraudulent, unregistered offerings of stock and bonds, according to SEC documents currently being reviewed by investor right lawyers Alan Rosca and Joe Peiffer.

Diversified reportedly represented that it was primarily engaged in the business of buying and selling fractional interests in oil and gas producing properties and also allegedly engaged in commodities trading in the futures market, SEC documents further allege.

In the end, however, as its disclosed use of proceeds expanded, Diversified allegedly used an allocation of the investor funds to buy fractional interests in oil and gas wells, cattle, a hydrogen device that purported to increase gas mileage on vehicles, trade commodities contracts, and invest in real estate, according to SEC documents under review by attorneys Joe Peiffer and Alan Rosca. As a result, the Peiffer Rosca Wolf investment recovery lawyers are currently investigating Diversified Energy Group, Inc. and its principal officers, Havanich, DellaSala, and Welch.

Diversified, Havanich, DellaSala, and Welch Allegedly Made Material Misrepresentations and Omissions; Touted Affiliation with St. Vincent de Paul Foundation

Diversified, Havanich, DellaSala, and Welch made material misrepresentations and omissions about Diversified’s financial performance and use of industry experts and technologies in Diversified’s offering material and correspondence to investors, according to SEC documents currently being analyzed by attorneys Alan Rosca and Joe Peiffer.

Furthermore, Havanich, DellaSala, and Welch also allegedly trumpeted their association with a charity organization, St. Vincent de Paul Children’s Foundation Inc., in Diversified’s offering materials, but that charity reportedly never had any true charitable activities, SEC documents further report.

Finally, beginning in 2009, the SEC notes, Diversified also reportedly hired unregistered sales agents to sell Diversified’s bonds, paying them commissions of 5% or 10% of the investor proceeds. Collectively, they earned approximately $985,000 in transaction-based compensation in connection with their sales activities, according to SEC documents under review by attorneys Joe Peiffer and Alan Rosca.

Investment Recovery Lawyers Investigating

The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of investment misconduct, and are currently investigating Diversified Energy Group, Inc. and its principal officers, Havanich, DellaSala, and Welch. 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.

Any investor who believes they lost money as a result of Diversified Energy Group, Inc. and its principal officers, Havanich, DellaSala, and Welch, are welcomed to contact the investment recovery attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1168 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.