A 56-year-old St. Paul man was among four people who were indicted Monday in what the U.S. attorney in Kansas City, Mo., says was a $7.2 million securities fraud scheme that cheated thousands of investors, many of whom were recruited through churches.

According to the indictment, Johnny Heurung of St. Paul sold shares in Petro America Corp., which supposedly was a profitable African-American-owned oil company worth $284 billion but in fact had little commercial value. Also indicted were Petro America founder Isreal Owen Hawkins, 55, of Kansas City, Kan., Teresa Brown, 52, of Bandera, Texas, and Clarence Moore, 62, of Atlanta, Ga.

Like Heurung, Hawkins and Brown allegedly promoted the stock to investors; Moore did accounting and tax preparation work for Petro America.

The 40-page indictment accuses Hawkins and Brown of marketing unregistered securities in the firm beginning in August 2008. Neither was a registered securities dealer. The government says they raised as much as $1 million in the first four months by marketing the stock on the Internet and at presentations to church groups. More than 9,000 people ultimately invested, according to a sworn statement by IRS criminal investigator Devin Fields.

The indictment says Brown approached Heurung to help pitch the stock because she heard he had experience with mines and oil. Heurung and Hawkins allegedly sent e-mails to investors in June 2009 stating falsely that Petro America had gone public and its stockholders had become millionaires.

Each of the defendants is charged with conspiracy, which carries a penalty of up to five years in prison. Heurung, owner of Money Investment Inc., also is charged with 10 counts of wire fraud, which carry penalties of up to 20 years in prison. Hawkins is charged with securities fraud, aggravated currency structuring, money laundering and 10 counts of wire fraud. And Brown is charged with securities fraud and 10 counts of wire fraud.

The government said that Hawkins and Brown spent most of the money that Petro America raised from investors on personal luxuries. The government is seeking to forfeit $130,129 that Heurung said he earned by selling shares in the company, plus $361,310.70 in cash and other assets seized from the other defendants.

Hawkins, Brown and Heurung could not be reached Monday

Dan Browning • 612-673-4493