Report: Investors in failed Stargate game still pursuing their money in Arizona court

Gaming, Movies, PC, RPGs, Sci-Fi & Fantasy, Technology, Television

An interesting story this weekend in The Arizona Republic and recapped by Airlock Alpha sheds some new light on the case of Mesa-based Cheyenne Mountain Entertainment’s bankruptcy and failed efforts to develop video games based on MGM’s Stargate television franchise.

This is a long, twisted saga that I followed for years for Nerdvana readers and barely scratched the surface. My work was submitted among other entries that won recognition from the Arizona Press Club and was even cited in Saturday’s article by Republic reporter J. Craig Anderson.

Gary WhitingAmong the latest developments described in the Republic report:

  • Former Cheyenne Mountain chairman and CEO Gary Whiting remains the focus of investors’ complaints. He has more than $6 million in civil judgments against him in Utah investor lawsuits, and a third was filed in Maricopa County Superior Court in February seeking about $4 million from Whiting and other former executives, board members and stock promoters. This suit alleges negligent misrepresentation, breach of fiduciary duty, common-law fraud and securities fraud. These investors claim they were falsely and deliberately told the game was further along in development than it actually was, leading them to believe their investment was sound.
  • Anderson also looks at “the many faces of Cheyenne Mountain” in a sidebar based on court documents that shows how complex the web of entities involved had become.
  • A bankruptcy consultant appointed by the U.S. Bankruptcy Court is liquidating Cheyenne Mountain’s remaining assets and seeking court permission to launch an investigation into the missing funds, with the hope of returning investors’ money:

Cheyenne Mountain’s court-appointed receiver, Keith Bierman of Phoenix-based MCA Financial Group, said company documents show millions of dollars collected from investors were not spent on development of Stargate Worlds and may yet remain in the hands of Whiting and other former company executives.

While development foundered on Stargate Worlds, an eagerly anticipated online roleplaying game based on a popular, established TV sci-fi franchise, a third-person online action game called Stargate Resistance was rushed to market. It was shut down in January 2010 after MGM revoked the license to use Stargate content.

Recently I revealed that the remnants of these Stargate games’ online promotional materials live on as little more than shameless and shady portals for online gambling — and MGM has let it go on this long.

There also are rumblings of a major Stargate SG-1-related announcement at San Diego Comic-Con and word of an app-based games for smartphones and tablet computers.

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About Jayson Peters

Nerdvana's founder and owner. Digital editor, social media director, educator. Lifelong Star Wars fan and Trekker who also worships all things Tolkien and Doctor Who.