Feds: Petro America, a KC-based oil scam, bilked millions from investors

A few hours ago, federal prosecutors filed an affidavit that details an incredible stock scam pulled off by a Kansas City-based businessman, who investigators say raised millions of dollars from investors — many of them local — and spent the money on cars, a house, and other luxuries.

The affidavit — written by a Treasury Department investigator and part of an ongoing federal investigation — corroborates and expounds on reporting done by The Pitch‘s Mandy Oaklander. Her story, which is online now, details the rise of the company, Petro America, and its founder, Owen Hawkins. It also shows how Hawkins enlisted local ministers to promote the company, which claimed to be worth almost $300 billion but is actually worth considerably less. Like, nothing.