David Cassidy In The News
Oil Bilk Charges Denied
June 29, 1974
Desert Sun
TULSA, Okla (UPI) - The former chairman of the bankrupt Home-Stake Production Co. denied Friday reports that he had committed fraud, and insisted he ran the business in accordance with his obligations to investors.
Federal authorities have charged Robert S. Trippel, 58, with tax fraud and criminal charges involving an alleged scheme to cheat big name entertainers, politicians and other investors out of millions of dollars.
“Not a single one of the allegations against me had ever been proven as a fact," Trippet said. “The central fact is that when I was with Home-Stake Production Co., 1 acted in accordance with my obligations to the company’s investors."
The company made a temporary settlement with the Securities and Exchange Commission and then filed bankruptcy papers last October. Trippet agreed to a permanent injunction against any further involvement with the firm, although he neither admitted nor denied charges.
Four investors, however, have filed a class action suit charging fraud.
The alleged scheme allowed investors from 1966 to 1969 to receive not only instant tax write-offs but dividends as well. The dividends, however, came not from profits but from additional money from subsequent investors.
Officers appointed by the court to straighten out the bankrupt company indicated Thursday they might actually try to drill for oil to recover some of the investment.
Singer Andy Williams was the largest investor, with $538,000, and other entertainers who invested included Jack Benny. Liza Minnelli, Buddy Hackett, Barbara Streisand, Alan Alda. Phyllis Diller, David Cassidy. Tony Curtis, Jonathan Winters and Bob Dylan.
Also named as investors were Thomas B. Ross, vice president, Merrill Lynch, Pierce, Fenner and Smith, Inc.; James R. Shepley, president. Time, Inc.; Ted B. Westfall, executive vice president. International Telephone and Telegraph; William H. Morton, president of American Express Co.; Sen. Ernest F. Boilings, D-S.C.; Sen. Jacob Javits, R-N.Y., and former Florida Gov. Claude R. Kirk Jr.
