New Mexico sues New Era and CEO after Alleged “Fraud on the State”

Based on Hunterbrook Media’s reporting, Hunterbrook Capital is short $NUAI at the time of publication. Positions may change at any time. See full disclosures below.

This holiday season, the energy company New Era Energy & Digital ($NUAI) got a lump of coal.

New Mexico Attorney General Raúl Torrez just filed a sweeping enforcement lawsuit seeking to bar New Era from conducting business in New Mexico until certain conditions are met. The requirements include paying civil damages and penalties. This litigation collides with the company’s push to develop a large, energy-intensive AI data center in the state.

The lawsuit accuses New Era, its chief executive Everett Willard Gray II, and a network of affiliated companies of orchestrating a fraudulent oil-and-gas scheme. Allegedly, the defendants sought to siphon revenue from wells that produce fossil fuels while abandoning environmental cleanup obligations.

New Era has not publicly responded, including to repeated requests for comment from Hunterbrook.

While the case involves hundreds of unplugged and inactive wells, the Attorney General emphasized that the lawsuit is not merely an environmental enforcement action. Instead, the complaint