Warren Mosler v. S/p Enterprises, Inc., Peter B. Carey, and Roger Pfohl

EASTERBROOK, Circuit Judge.

Warren Mosler, a professional securities trader and experienced investor, purchased interests in some Ohio oil and gas properties. Michael Krebsar, Michael McKenzie, and Ralph Santilli, as M/K Ventures International, Inc., operated and promoted these properties. Krebsar recruited Peter B. Carey (a partner of a Chicago law firm) and Roger Pfohl to round up investors in Illinois. Neither Carey nor Pfohl had special knowledge about oil and gas in Ohio — or anywhere else, for that matter. Carey and Pfohl formed S/P Enterprises, Inc., through which they sold interests in…