Berkshire Resources, L.L.C., et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21708 / October 25, 2010

DISTRICT COURT ENTERS FINAL JUDGMENT IMPOSING DISGORGEMENT AND A CIVIL PENALTY AGAINST DEFENDANTS BERKSHIRE RESOURCES, L.L.C., BERKSHIRE (40L), L.L.P., BERKSHIRE 2006-5, L.L.P., PASSMORE-5, L.L.P., GUEYDAN CANAL 28-5, L.L.P., GULF COAST DEVELOPMENT #12, L.L.P., AND DRILLING DEEP IN THE LOUISIANA WATER, J.V.

Securities and Exchange Commission v. Berkshire Resources, L.L.C., et al., Case No.: 1:09-CV-00704-SEB-JMS (S.D. Ind.)

The Commission announced that on October 15, 2010, the United States District Court for the Southern District of Indiana entered a final judgment imposing disgorgement and a civil penalty against Defendants Berkshire Resources, L.L.C. ("Berkshire"), Berkshire (40l), L.L.P., Berkshire 2006-5, L.L.P., Passmore-5, L.L.P., Gueydan Canal 28-5, L.L.P., Gulf Coast Development #12, L.L.P., and Drilling Deep In The Louisiana Water, J.V. (with Berkshire, the "Berkshire Defendants").

The final judgment held the Berkshire Defendants jointly and severally liable and ordered them to pay $15,400,000 in disgorgement together with $205,846.57 in prejudgment interest thereon for a total of $15,605,846.67. In addition, Berkshire was ordered to pay a civil penalty in the amount of $650,000, pursuant to Section 20(d) of the Securities Act of 1933 and Section 21(d) of the Securities Exchange Act of 1934.

The Commission's June 8, 2009 complaint alleged, among other things, that from April 2006 through December 2007 Berkshire, a Wyoming company, and others raised approximately $15.5 million from approximately 265 investors in the US and Canada through a series of unregistered, fraudulent offerings of securities in the form of "units of participation".

On September 3, 2010, the Court entered separate final judgments against the other defendants and relief defendants in this case enjoining them from further violations of the securities laws and ordering them to pay full disgorgement, prejudgment interest, and civil penalties.

For additional information, see LR-21074 (June 9, 2009), LR-21330 (December 10, 2009), and LR-21642 (September 3, 2010).