Experienced Entrepreneur JB Yowell Shares Valuable Lessons and Offers Advice from a Small Investment Setback with Michael Patman of Woodland Resources in 2019
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Fort Worth, Texas – JB Yowell, a seasoned entrepreneur and the founder of the renowned Texas entity ALG Holdings, has come forward to share his cautionary tale of blindly trusting investment opportunities without due diligence, particularly in his dealings with Michael Patman and Woodland Resources. Yowell's narrative serves as a stark reminder of the crucial importance of due diligence in business transactions.
Renowned for his past success in the oil sector, Yowell openly admitted, "I am a trusting person by nature. If you're charming and tell a good story, it's easy for me to get excited. I live by my word as it's my bond. However, I've learned the hard way that someone's words aren't enough these days; you have to do your homework, which I failed to do with Michael Patman and Woodland Resources. Fortunately, my loss was small and not too impactful. Lesson learned."
In 2017, Yowell sold Yohawk Energy, an oil company he founded in 2011, to pursue new ventures, including a marketing agency specializing in assisting small to mid-sized companies in enhancing their online presence and customer base. Woodland Resources sought Yowell's expertise in designing an online marketing campaign. Through this collaboration, Yowell was introduced to Michael Patman, then CEO of Woodland Resources, described by Yowell as someone who "exuded so much charisma and charm." Unfortunately, lacking thorough due diligence, Yowell participated in two oil wells and referred investors based solely on trust.
"Michael Patman was a very charming talker, and he truly knew the oil business. Coming to find out, he had a severe history of fraud," lamented Yowell. When suspicions arose, Yowell promptly sent Patman a certified letter rescinding his investment. However, the Texas Securities Board and SEC intervened, issuing an emergency Cease and Desist notice to all well owners, including Yowell. Fortunately, Yowell's cooperation and transparency with the Texas Securities Board resulted in his exclusion from the investigation.
Reflecting on his experiences, Yowell shared, "I've learned a lot of hard lessons along the way, most of them from being trusting and young-arrogant enough to think I could figure this out without consulting real experts. This included filing investment offerings on my own, such as a deal I did with Cunningham back in 2011, which the State of Michigan filed a Cease and Desist years later simply because we forgot to file one document, and that cost $10,000!" Nowadays, JB never invests nor creates an offering of any kind without including his Securities Attorney John Fahy, Partner of the law firm Whitaker Chalk based in Fort Worth, Texas. John R. Fahy is a seasoned securities attorney with significant regulatory experience, including serving as an Enforcement Attorney for the U.S. Securities and Exchange Commission and the Texas State Securities Board. His extensive regulatory experience means that he has a great relationship with regulators, helping him navigate the complex SEC system. He currently serves as vice-chair and council member of the State Bar of Texas Business Law Section and previously chaired the Section’s Securities Law Committee. “I don’t touch a deal nor file an offering without John,” JB mentions.
Presently, as the owner of ALG Holdings, Yowell manages a diverse portfolio of businesses, including Real Estate, Comedy Clubs, Pizza Chains, Coffee Shops, Film Production, and Oil ventures in Texas, Georgia, and New York. ALG Holdings emphasizes meticulous adherence to rules, bureaucratic processes, and transparency in all its business and private investment offerings.
When asked about due diligence items to obtain when evaluating investments, Yowell replied, "The first thing I ask is why do they need or want me? Only for money or also for my skillset and connections. I try to ask them for a track record in the vertical they are in. Depending on the dollar amount, I'll even request a credit score or have them add me on their social media so I can eavesdrop on their lifestyle, which is important for me to see. You can get a true feel for how they live by looking at their Facebook page or etc. Overall, I'm just trying to gauge if they have integrity and follow through. I get they may not have a long track record, but I'm trying to establish some sort of who they are foundation."
"I bring years of hard-knocks experience into my brands. It hasn't always been a smooth ride, but I pride myself on being very transparent and following through with my word," declared Yowell. ALG Holdings, headquartered in Fort Worth, Texas, focuses on acquiring legacy brands and expanding them alongside private investor partners accredited by SEC definitions. Yowell has a core team at ALG which has been part of his companies for over 10 years, and some for 15 years.
About ALG Holdings: ALG Holdings is a private company headquartered in Fort Worth, Texas, with operations in Texas, Georgia, and New York. Specializing in acquiring and expanding legacy brands across various industries, the company operates with a commitment to transparency, integrity, and strategic partnerships with accredited investors. For more information, visit www.algholdings.co