WEDNESDAY, OCTOBER 4, 2017
LOCAL NEWS
HERMISTONHERALD.COM • A7
State: Biodiesel plant plan a ‘scam’
By JADE McDOWELL
STAFF WRITER
The Oregon Department of Con-
sumer and Business Services is
calling plans for a $1.37 billion bio-
diesel plant in Stanfield a “scam,”
but Ontario developer Robert “Bob”
Doughty says he fully intends to
build the project.
The state fined Doughty and his
companies — Inland Pacific Energy
Center LLC and Global Alternative
Energy Centers LLC — $35,000 for
violating Oregon securities law and
ordered him to cease offering and
selling unregistered securities.
According to the department,
Doughty lied to investors about
owning land in Stanfield and other
aspects of the project, convincing
at least 12 people to invest a total of
$250,000 that he allegedly used on
“extensive” food and travel expenses
for himself.
“At various times since 2005,
Doughty claimed to have $120 mil-
lion in equity funding committed,
$545 million in funding committed,
and $5.6 billion in pending financ-
ing; implied that local governments
were involved with the project; and
said he applied for permits to begin
construction,” the DCBS wrote in a
news release. “None of these claims
were ever true and Doughty contin-
ues to solicit investments via Linke-
din.com.”
Doughty tells a different story.
He said preparation for the Inland
Pacific Energy Center was “off and
going” when the 2008 financial crisis
stalled investments. He said “some”
funding has now become available to
move the project forward but did not
elaborate on the source of the funds.
“We fully intend to pursue the
project to the best of our ability,” he
said.
Doughty said he never lied to in-
vestors and told them only that he
had right of first refusal on a prop-
erty in Stanfield, not that he owned
it. He called the state’s investigation
one-sided and said he plans to appeal
the fine.
“I will be doing battle with the
state,” he said.
Whether Doughty intends on
building the plant or not, the DCBS
says he does not have the required
securities license to solicit or sell
investments and has not registered
shares in accordance with state secu-
rities law. The official order to fine
Doughty also describes two inves-
tors who told the state they invested
in 2007 and have never seen any re-
turn on their investment. They said
Doughty had misled them on a num-
ber of points, including providing a
project summary claiming the proj-
ect was “poised for construction”
despite the fact that Doughty did not
own any land in Stanfield on which
to build the project, had not applied
for any of the necessary permits and
no investors had committed the hun-
dreds of millions of dollars in fund-
ing he claimed had been committed
to the project.
After investigation of the two in-
vestors’ experience, the department
issued the fine and followed up with
a news release warning the public
that the project was a “community-
wide investment scam.”
“This is another reminder of how
important it is to check out proposed
investments and the person pro-
moting them,” Jean Straight, acting
DCBS director, said in a statement.
“Renewable energy, gold, silver, oil,
gas, new tech ventures, and legal
marijuana are all buzzworthy indus-
tries that scammers like to use to take
your money. We urge anyone consid-
ering an investment to contact us to
verify the information.”
The Inland Pacific Energy Center
project is known to longtime resi-
dents of Stanfield. The East Orego-
nian wrote articles in 2006 and 2007
detailing Doughty’s presentations to
Stanfield city leaders. In March 2006
the newspaper reported that he told
the city council odds of the plant
being built were “98 to 2” and con-
struction would likely begin within
six to seven months. In a March 2007
interview, Doughty told the East Or-
egonian he had a $504 million deal
for debt financing for the project but
couldn’t disclose the name of the
firm because negotiations of some
details were still underway.
The articles describe a proposed
biorefinery located on 400 acres on
Canal Road that could produce up to
120 million gallons of ethanol and
96 million gallons of biodiesel per
year, creating as many as 600 jobs in
the area by 2010. A 2009 article said
Doughty had added plans for a large
co-generation plant burning solid
waste. It described some Stanfield
residents, including Mayor Thom-
as McCann, as skeptical the project
would actually happen.
Blair Larsen, who became the
city manager in 2013, said he spoke
with Doughty once or twice since
then. Although Doughty had vari-
ous meetings and phone calls with
city officials over the years about his
plans, Larsen said the city was nev-
er put in a position to actually make
a decision about granting a permit,
zoning change or other approval.
“It was all just theoretical stuff,”
he said.
Doughty insists that he still plans
to create the Inland Pacific Energy
Center and that his companies have
recently been restructured and “re-
vived.”
“We’re ready to go,” he said.
The Oregon Department of Con-
sumer and Business Services urges
anyone considering an investment
with Doughty to call them first at
866-814-9710.
———
Contact Jade McDowell at jmc-
dowell@eastoregonian.com or 541-
564-4536.
Eastern Oregon Telecom breaks ground
By JADE McDOWELL
STAFF WRITER
Eastern Oregon Tele-
com
broke
ground
Wednesday for a new
building that will combine
the company’s business
and warehouse operations
into one location.
The new building on
Kelli Avenue just off
South Highway 395 is ex-
pected to be finished by
May 1, 2018.
CEO Joe Franell said
10-minute trips back and
forth between the current
business offices and the
place where the company
stores its trucks and equip-
ment can really add up.
“It ends up being a lot
of time, so our primary
reason for moving is for
efficiency’s sake,” he said.
He said the location
along South Highway 395
is also more central to
EOT’s service area. The
Kelli Avenue location in
particular is advantageous
because it has two dif-
ferent entrance and exit
points — onto the high-
way or onto Feedville
Road. That area of town is
STAFF PHOTO BY JADE MCDOWELL.
A collision between a Dodge Neon and a tractor blocked
traffic on Canal Road near Christley Lane outside Hermiston
Thursday about 5:30 p.m., resulting in one person being
transported by ambulance from the scene.
Name of driver in Canal
Road crash released
The driver injured in
a crash on Canal Road
Thursday evening was
Kyle Naillon, 20, of Herm-
iston.
According to Umatilla
County Sheriff Terry Rowan,
Naillon was northbound on Ca-
nal Road near Christley Lane
when his Dodge Neon crashed
head-on with a tractor driven
southbound by Craig Parks
about 5:30 p.m.
Naillon was transported
to Good Shepherd Medical
Center by ambulance.
Rowan said the location
of the crash was at a “pret-
ty good curve” and Naillon
may have been going “a lit-
tle too fast for conditions.”
He said no citations had
been issued.
“People just need to use
caution in that area,” he
said.
Del’s Feed and Farm
Supply to close Oct. 28
The final day for Del’s
Feed and Farm Supply in
Hermiston will be Oct. 28.
The farm supply store
on North Highway 395 an-
nounced in the spring that
it was closing its doors this
year as part of a larger de-
cision by parent company
Tractor Supply Company
to close various locations
around the Pacific North-
west.
“Our decision to close
these locations was based
on many business factors,
and we came to this deci-
sion after much analysis,”
John Logan, regional vice
president at Tractor Supply
Company, said in a state-
ment. “Del’s has been a
part of the Hermiston com-
munity for many years, and
we are thankful to our cus-
tomers for their loyalty and
business.”
Close-out sales began
last week, with discounts of
15 to 25 percent, and will
continue until the store’s
last day on Oct. 28.
WEVE GOT JUST YOUR SIZE
W
HAR
HARD
R WORKING TRACTOR
FROM 24 TO 80 HP
BRANSON 3120R
CONTRIBUTED PHOTO BY DEBBIE PEDRO
Eastern Oregon Telecom broke ground on a new building Wednesday morning, Sept. 27.
also expected to see an in-
crease in traffic due to the
newly completed Eastern
Oregon Trade and Event
Center and the Ranch &
Home store currently un-
der construction.
“That’s a growth area
for our community,” he
said.
The new building will
have a better layout for
office space, Franell said,
and will have almost dou-
ble the amount of space
for trucks and equipment
storage. The company
plans to hire two more em-
ployees in the next six to
12 months.
Construction is being
completed by McCormack
Construction Company of
Pendleton and the devel-
oper is Richard Hunsaker,
who handled the Holiday
Inn Express in Hermiston.
Eastern Oregon Tele-
com offers high-speed in-
ternet and voice services
to Hermiston, Pendleton,
Umatilla, McNary, Board-
man, Irrigon and Plym-
outh.
———
Contact Jade McDow-
ell at jmcdowell@eastore-
gonian.com or 541-564-
4536.
B
BRANSON 3520R
WE CAN MEET ALL
YOUR
BRANSON NEEDS.
Y
NORTONS
NOR T ONS WELDING
131
131 HWY 82 L
LOSTINE,
OSTINE, OR
541-569-2436
Toll
T oll Free:
F r ee: 866-628-2497 / Cell: 541-398-2900
www
www.nortonwelding.com
.nor tonw elding.com
What if you’re already living in your
dream home?
A U.S. Bank Home Equity Line of Credit could help turn your home into the
home of your dreams. With competitive rates and flexible payment options,
lasting home improvements could be within reach.
HOME EQUITY LINE OF CREDIT
Introductory rate
for 6 months.
Rates as low as
1.99
Rate available 9/9/17–11/17/17
Rates are subject to change.
Variable rate after
introductory period:
4.65
Actual rate may be lower.
Visit your local branch or usbank.com.
Call 800.209.BANK (2265), visit a local branch,
or go to usbank.com/dreambig
*1.99% Introductory Annual Percentage Rate (APR) is available on Home Equity Lines of Credit with an 80% loan-to-value (LTV) or less. The Introductory Interest Rate will be fixed at 1.99% during the 6-month Introductory
Period. A higher introductory rate will apply for an LTV above 80%. Offer is available for new applications submitted from September 9 – November 17, 2017. After the 6-month introductory period: the APR is variable and
is based upon an index plus a margin. The APR will vary with Prime Rate (the index) as published in the Wall Street Journal. As of September 9, 2017, the variable rate for Home Equity Lines of Credit ranged from 3.79%
APR to 8.20% APR. Higher rates may apply due to an increase in the Prime Rate, a credit limit below $100,000, an LTV above 70%, and/or a credit score less than 730. A U.S. Bank Consumer Silver, Gold, or Platinum
Checking Package account is required to receive the lowest rate, but is not required for loan approval. The rate will not vary above 18% APR, or applicable state law, or below 3.25% APR. Choosing an interest-only repayment
may cause your monthly payment to increase, possibly substantially, once your credit line transitions into the repayment period. Repayment options may vary based on credit qualifications. Interest only repayment may be
unavailable. Loans are subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Credit
Line may be reduced or additional extensions of credit limited if certain circumstances occur. Property insurance is required. U.S. Bank and its representatives do not provide tax or legal advice. Your tax and
financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation. Other restrictions may apply. Mortgage and Home Equity products are
offered by U.S. Bank National Association. Deposit Products are offered by U.S. Bank National Association. Member FDIC. Customer pays no closing costs. Initial escrow related funding costs may apply. An annual
fee of up to $90 may apply after the first year and is waived with a U.S. Bank Consumer Platinum Checking Package. The Consumer Pricing Information brochure lists fees, terms, and conditions that apply to
U.S. Bank Consumer Checking Package accounts and can be obtained by visiting a branch or calling 800.872.2657. ©2017 U.S. Bank. 171177c 9/17