ROME v. HEI RESOURCES, INC.

Court of Appeals No. 13CA2090.

411 P.3d 851 (2014)

2014 COA 160

Gerald ROME, Acting Securities Commissioner for the State of Colorado, Plaintiff-Appellant, v. HEI RESOURCES, INC., f/k/a Heartland Energy, Inc.; Charles Reed Cagle; Brandon Davis; Heartland Energy Development Corporation; Bedrock Energy Development, Inc.; John Schiffner; and James Pollack, Defendants-Appellees.

Colorado Court of Appeals, Div. VII.

Rehearing Denied December 18, 2014.


Attorney(s) appearing for the Case

John W. Suthers , Attorney General, Sueanna P. Johnson , Assistant Attorney General, Charles J. Kooyman , Assistant Attorney General, Russell B. Klein , Assistant Attorney General, Denver, Colorado, for Plaintiff-Appellant.

Shoemaker Ghiselli + Schwartz LLC, Andrew R. Shoemaker , Alice Warren-Gregory , Paul H. Schwartz , Boulder, Colorado, for Defendants-Appellees HEI Resources, Inc. and Charles Reed Cagle.

The Tenenbaum Law Firm, George D. Kreye , A. Thomas Tenenbaum , Greenwood Village, Colorado, for Defendants-Appellees Brandon Davis, Heartland Energy Development Corporation, and Bedrock Energy Development, Inc.

Robinson Waters & O'Dorisio PC, Otto K. Hilbert, II , Denver, Colorado, for Defendants-Appellees John Schiffner and James Pollack.

King & Greisen, LLP, Paula D. Greisen , Denver, Colorado; Jay E. Sushelsky , Washington D.C., for Amicus Curiae AARP Foundation Litigation.

Pendleton Wilson Hennessey & Crow, Paul L. Vorndran , Denver, Colorado; Christopher Staley , Washington D.C., for Amicus Curiae North American Securities Administrators Association, Inc. — NASAA.


¶ 1 This case requires us to address the rules that determine when an interest in a general partnership or joint venture constitutes a security under the Colorado Securities Act (Act).1 The trial court applied a "strong presumption" that general partnership interests are not securities....

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