Opinion ID: 11538
Heading Depth: 2
Heading Rank: 3

Heading: horizontal drilltex

Text: 18 Cushman hired Royce Calk (Calk), a certified public accountant, to do accounting work for Hartford and later made Calk president of a company called Horizontal Drilltex. It was falsely represented to investors that Horizontal Drilltex and Hartford were separate entities and that Horizontal Drilltex had drilled between 20 and 30 wells. Additionally, completion funds, which were only to be called from an investor after the well was completed, were called before drilling began. 19 Hanks, Holloman, Overstreet, and Stanley Crutchfield met with Jim Meyers (Meyers), who sold Horizontal Drilltex a drilling rig for $109,000. Holloman signed a promissory note for the rig on behalf of Horizontal Drilltex. Hanks appraised the drilling rig at $1,250,000. Meyers thought that, after improvements, the rig would be worth $350,000 to $400,000 on the market. The drilling rig was used to raise $1,000,000 in investor funds, which was deposited in Horizontal Drilltex's account.