Investors perusing Evolution’s 50-page offering statement wouldn’t know Dennis McLaughlin presided over the collapse of Earth Biofuels because McLaughlin doesn’t disclose it. He lists his employment with Apollo Resources International and Aurora Natural Gas, where he was chief executive until 2001. But he doesn’t mention Aurora’s bankruptcy that year, or the fraud allegations that Duke Energy pursued against Aurora until settling the case on undisclosed terms in 2003.
Neither does he disclose the long-running SEC investigation into his activities at Apollo, including allegations McLaughlin has used outside consulting firms to siphon money from public companies he controls. The SEC doesn’t comment on pending investigations. But according to a 2006 SEC request for documents, the agency was seeking information about McLaughlin’s dealings at Apollo and another tiny public company he runs, Blue Wireless, as well as payments to outside consulting firm MAC Partners, which McLaughlin founded in 2002.