Breaking News: Tongue River Railroad Executive Under Investigation by State and FBI

As we went to press, statewide news reported that Pat Davison, formerly with Wesco Resources, the company seeking to develop both the Tongue River Railroad and the Otter Creek coal tracts, has been charged with securities fraud by the State Auditor’s Office, and is being sued by former clients who allege he bilked them out of their milliondollar retirement fund.

Davison, a high-profile Billings Republican activist, former gubernatorial candidate, and the campaign finance chair for Sen. Conrad Burns’ re-election campaign, is under investigation by the FBI. He resigned his position with the Burns campaign on July 27th. Furthermore, according to news reports that quoted Chief Executive Mike Gustafson of Wesco Resources: “Our business has separated itself from Pat Davison and we have removed him from any management responsibilities and any involvement in our projects.” Davison also led former Governor Marc Racicot’s campaign finance efforts.