Parshall developers told to cease and desist
North Dakota Securities Commissioner Karen Tyler has ordered North Dakota Developments LLC, Robert L. Gavin, and Daniel J. Hogan to Cease and Desist from engaging in fraudulent practices in connection with the offer and sale of investments in man camp housing developments in the Bakken oil field region of North Dakota and Montana.
One of the projects North Dakota Developments was promoting was the Transhudson Hotel proposed for Parshall. The hotel was to have been located on a 37 acre development on the northeast corner of the junction of North Dakota Highways 23 and 37. According to Parshall City Auditor Kelly Woessner, the company had made another presentation to the Parshall City Council in January but the city hasn’t heard from them since.
The Securities and Exchange Commission also took action today, filing in US District Court for the District of North Dakota a Complaint and Emergency Motion for a Temporary Restraining Order.
Investors in the fraudulent scheme were sold interests in six different housing developments in Western North Dakota and Eastern Montana: Great American Lodge Watford West, Great American Lodge Watford East (AKA McKenzie Crossing), Great American Lodge Montana (Culbertson, MT), Transhudson Hotel (Parshall, ND), Transhudson Apartments Williston Heights, and Bakken Base Camp.