Kenneth Carlton Allegedly Used Bad Science to Solicit Investments for Gold Mining Operations
Nekekim Corporation and its CEO, Kenneth Carlton, induced hundreds of investors to invest over $16 million in a fruitless gold mining venture, according a complaint filed by the Securities and Exchange Commission.
Nekekim and Carlton defrauded investors by making representations that a special “complex ore” found at Nekekim’s mine site in Nevada contained gold deposits worth at least $1.7 billion, according to the complaint. Carlton provided investors with test results produced by two small labs that used unconventional methods to test the “complex ore” for gold to provide proof of the gold deposits, according to the SEC. However, Carlton did not disclose to investors that other tests conducted by different firms determined that that the Nekekim mine had little to no gold and he also failed to disclose that the small labs’ reliability had been called into doubt by geologists and a government study, according to the complaint.
Carlton stated to investors that Nekekim had to develop a method to extract the gold from the “complex ore” found at the mine site, according to the complaint. Carlton falsely informed his investors that a “physicist” helped devise a confidential gold extraction technique that was licensed by Nekekim, however, the “physicist” did not possess any scientific training, according to the SEC.
Nekekim failed to produce any mining revenue causing Carlton to promote a series of other supposedly promising extraction methods in frequent reports to shareholders, according to the complaint. Each of these methods failed, and Carlton’s reports grossly overstated Nekekim’s progress toward profitability while prompting shareholders to invest more money in the company.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. 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.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.