Clear skies ahead!

Kelcas is actively futureproofing against scam attacks and tackling fraud after successfully filing an Undertaking with TSSB in Texas.

Based upon the TSSB’s finding, HOK Lam and his affiliate entities had NO prior relationship with Kelcas and were not authorized by Kelcas to solicit US residents to invest in Kelcas oil exploration projects. Our working interests in the New Harmony Project are and were permitted to be offered to non-US residents only as decided by Kelcas. This requires no prior registration in the US according to US securities laws. As such, there was simply NO basis to issue an Emergency Order, which effectively shuttered Kelcas’ operations. TSSB has issued a 100% dismissal. Kelcas is 100% clear to proceed as usual since 1988.

To whom it may concern,

On September the 16th, 2019, the TSSB issued an Emergency Cease and Desist against HOK (HOK Global Consulting Pte. Ltd., aka HOK Global Consulting Ptd. Ltd., and Hok-Lam Chan) and Kelcas. In its Order, the TSSB alleged that HOK and Kelcas had engaged in an unregistered offer of securities in Texas, and fraud and misrepresentation in connection with that alleged offer.

The entire basis for the TSSB’s allegations was a fraudulent solicitation by HOK on behalf of Kelcas. Specifically, on July the 14th, 2019 HOK contacted TSSB Director of Enforcement, Joe Rotunda, and asked if he would be interested in an “oil well investment.” Over the next few days, HOK and Mr. Rotunda corresponded via LinkedIn and email regarding the potential investment, and HOK provided information to Mr. Rotunda related to Kelcas. From this, Mr. Rotunda believed HOK to be soliciting him on Kelcas’ behalf. However that was simply not the case. Kelcas has no relationship with HOK and had never heard of HOK before the TSSB issued its Order.

The TSSB action is now fully resolved. In that action, Kelcas executed and filed with the TSSB an “Undertaking”. In this Undertaking we agreed to enhance our compliance program to ensure compliance with the Securities Act and applicable rules and regulations and to not to associate with HOK or any of his affiliate entities. Additionally we are immediately enhancing our existing compliance program to police the activities of their overseas finders so as to prevent, to the fullest extent possible, the unfortunate situation which occurred with HOK’s unauthorized actions. Based upon the Undertaking and TSSB’s findings, HOK and his affiliate entities had no prior relationship with Kelcas and were not authorized by them to solicit persons located in the United States to invest our New Harmony Project. Arising from this, the TSSB dismissed and set aside its Emergency Cease and Desist Order against Kelcas.

In summary, our working interests in the New Harmony Project are and were permitted to be offered to foreign residents only under federal and Kentucky law without prior registration of these securities. As such, there was simply no basis to issue an Emergency Order, which effectively shuttered Kelcas’ operations.

Kelcas invested millions of dollars ($30M+) in various companies and projects in Kentucky since 1995, including projects in Albany, Bowling Green, and Owensboro, Kentucky. These projects have directly or indirectly generated employment for Kentucky residents and significant tax revenues for the state.

Nevertheless, I want to express my deepest apologies for all harm that has been inflicted upon our clients, our partners and our employees as a result of the above mentioned legal actions.

In the future we will continue striving to provide a quality service and profitable investments.

Here is to clear skies ahead!

Sincerely,

Wilhelm Lilliehook
CEO