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Ute Indian Tribe Sues Former Financial Advisor

UINTAH AND OURAY RESERVATION, Utah-(Business Wire)-September 4, 2008 - The Ute Indian Tribe of the Uintah and Ouray Reservation of Northern Utah (the “Ute Tribe” or “Tribe”) announced today that it has filed a lawsuit against John Jurrius, the Jurrius Group LLP, and the Jurrius Ogle Group LLC (“Jurrius”) for fraud, breach of contract and breach of fiduciary duty in the U.S. District Court for the District of Colorado.

According to the filing, Jurrius, taking advantage of its role as the Ute Tribe’s financial advisor, wrongfully and fraudulently claimed an interest in critical energy businesses that are rightfully the property of the Tribe. The suit alleges that Jurrius accomplished this through a maze of complex financial transactions, misrepresentations and willful omissions.

“Jurrius used its position as our advisors with full access to our books and records to fraudulently claim assets and revenue that clearly belong to the tribe,” Curtis R. Cesspooch, Chairman of the Tribal Business Committee, said. “Given the fact that the revenue from the development of these oil and gas resources on our traditional lands is our primary source of income, Jurrius’ actions are a direct threat to the Tribe’s and our families’ well being.” Irene C. Cuch, Vice Chairperson of the Tribal Business Committee added, “The Business Committee has the fiduciary responsibility to protect the tribal assets and the millions of dollars that we oversee.”

The lawsuit seeks the return of Jurrius’ and affiliated entities’ proceeds from the consulting agreement and of their wrongfully obtained interests in the Tribe’s businesses; the cancellation of the original agreement between the Tribe and Jurrius; compensation for lost revenue; and punitive damages.

Specifically, the suit alleges that Jurrius violated the Investment Advisers Act of 1940, as well as the common law of the State of Colorado in their dealings with the Ute Tribe by:

Assuming, without investing its own capital, an equity position in the Tribe’s investments and projects, including Ute Energy Holdings, LLC and Ute Energy LLC;
Failing to properly notify the Tribe of its intention to exercise its Participation Option, in direct violation of its Financial Consulting contract with the Tribe;
Misrepresenting itself as a licensed investment advisor and charging for those services;
Violating its fiduciary duties of good faith and fair dealing by wantonly misrepresenting its intent.

The suit also asserts claims under the Indian Mineral Development Act of 1982.

The Ute Indian Tribe is being represented by Fredericks Peebles & Morgan LLP and Milberg LLP.

About the Ute Indian Tribe

The Ute Indian Tribe resides on the Uintah and Ouray Reservation in Northeastern Utah. Three bands of Utes comprise the Ute Indian Tribe: the Whiteriver Band, the Uncompahgre Band and the Uintah Band. The Tribe has a membership of more than three thousand individuals, with over half living on the Uintah and Ouray Reservation. The Ute Indian Tribe operates its own tribal government and oversees approximately 1.3 million acres of trust land which contains significant oil and gas deposits. The Tribal Business Committee is the governing council of the Tribe.

About Fredericks Peebles & Morgan LLP

Fredericks Peebles & Morgan LLP serves as general counsel to the Ute Indian Tribe of the Uintah and Ouray Reservation of Northern Utah, and is dedicated to the representation of American Indian tribes and Native American organizations throughout the United States. Legal services include a wide spectrum of services related to Indian concerns in the areas of business transactions, litigation and governmental affairs.

About Milberg LLP

Milberg LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website (http://www.milberg.com) for more information about the firm.

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