Alaska Dakota Development Company
Fraudulent promotion of Alaska Dakota Development served an important purpose regarding the state’s oil industry
The 1957 discovery of the giant Swanson River oilfield on Alaska’s Kenai Peninsula excited interest from potential investors. As petroleum companies rushed to the new field, some shady promoters saw an opportunity.
By the end of the decade, New York Attorney General Carl Madonick noted that with securities fraud, the first big step was creation of a national market price via fictitious quotations and phony transactions.
Investors should be wary of shady promoters seeking to take advantage of the lure of “black gold.” Photo courtesy FBI.
Madonisk expained that such fictions helped to convince potential investors of a company’s legitimacy. He cited Alaska Dakota Development to illustrate such fraudulent schemes. (more…)
