Gas in oil of pony motor on RGN? How is this happening?

Whenever i has this usssue in my vanguard pony motor, I had to have the carburetor rebuilt and it took care of the issue

 

Mine lasted 18 months before I had it rebuilt - I ordered mine new as well.

Take it back to the dealer you bought it from, best I can tell you

 

Company I used to work at used small Hondas for pump motors... Half dozen to 10 trucks... Each year we would replace at least 3 pony motors.

 

Does it have a fuel pump that runs off the engine?
Possibly a ruptured fuel pump diaphragm if it has one?

 

I am guessing your Honda is a 13hp model GX390. If so they are notorious for the crank cases flooding when gas left on. You did say you cut the gas off and let the bowl run dry, but since it is still flooding the crank case with gas the fuel shutoff may not be shutting the fuel off 100% even when the lever is fully moved to the left (left is off and right is on). A way to check it is after you typically drain the bowl when running to wait for 10 minutes maybe and try starting it without turning the fuel back on. In my opinion though the way I would check it is to leave the lever off and then you remove the very bottom bolt on the bowl which removes the bowl completely and then see if it drips or runs with the gas shutoff. Turn the lever on and off and watch and see what happens. Just thinking it is a faulty fuel shutoff lever.

 

That is the exact motor we used for pump trucks... Good motor when they are running... But when they go kaput... They really go kaput... I should have thought of the faulty fuel shut off... The Honda I put on my log splitter had the shut off do that... Not shut off all the way, that is.