Energy Sources International Corporation and Xact Holdings Corporation – SEC Files Complaint | Goodman & Nekvasil P.A. May Recover Investor Losses

According to the SEC Complaint:

This matter involves an offering fraud orchestrated by Donald G. Blakstad in which Donald Blakstad raised approximately $3.544 million from at least 14 investors through the fraudulent offer and sale of securities in three companies he owned and controlled. Instead of investing as promised, Blakstad used the majority of investor proceeds for his personal benefit, including spending funds on personal entertainment, the purchase of a stake in a nightclub, the purchase of a luxury automobile, and to fund illicit securities trading.

Between at least July 2015 and May 2019, Blakstad raised funds through (1) Midcontinental Petroleum, Inc. (“Midcontinental”), a purported oil, gas, and alternative energy resources company; (2) ESI, a purported cryptocurrency mining operation; and (3) Xact Holdings, a company formed to acquire a Canadian manufacturer of industrial vehicle components (“Canadian Company”).

Defendants induced investors to purchase securities in these companies by making a number of materially false and misleading statements and omissions concerning the use of investor proceeds and the business operations of Midcontinental.

With respect to Midcontinental, Donald Blakstad told investors that their money would be used to fund start-up and other costs related to oil, gas, and alternative energy exploration, including the acquisition of land leases and other equipment needed for energy exploration, extraction, and storage. In connection with ESI, Donald Blakstad and ESI told investors that their funds would be used to purchase equipment and cover “start-up costs” for ESI’s purported cryptocurrency mining operations. And for Xact Holdings, Donald Blakstad and Xact Holdings told investors that their funds would be used to acquire Canadian Company and to lease facilities in Houston, Texas. Each of these representations was false.

Rather than using the investor funds as stated, Donald Blakstad treated the funds in the company bank accounts as his own personal piggybank.

Investors in Energy Sources International, Xact Holdings Corporation and/or Midcontinental  May Recover their Losses with Goodman & Nekvasil, P.A.

If you invested in Energy Sources International, Xact Holdings Corporation and/or Midcontinental Petroleum, Inc, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors. 

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years. 

There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.

If you incurred investment losses in Energy Sources International, Xact Holdings Corporation and/or Midcontinental Petroleum, Inc. and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us. 

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