Oil and Gas Financiers Admit to Running Ponzi Scheme
Last week, two oil and gas financiers pleaded guilty to running a Ponzi scheme in Texas. According to court documents, the duo lied to investors — falsely telling them they were collecting money to invest in new energy ventures. In fact, they were using the money to illegally finance their luxurious lifestyles.
Money Used for Personal Luxuries
The two oil and gas financiers pleaded guilty to defrauding investors out of tens of millions of dollars. Robert Allen Helms and Janniece Kaelin admitted to using consumer investment money to finance their lavish personal expenditures, which included their daughter’s $247,415 wedding in Hawaii and international vacations.
Government officials claim that Helms and Kaelin were running a Ponzi scheme. Allegedly, they used the money invested by new shareholders to make income payments older shareholders. This created the illusion that their investments were profitable when they actually were not. Furthermore, to create the illusion of legitimate business operations, Helms and Kaelin fabricated royalty and mineral purchase documentation.
Both pleaded guilty to securities fraud and conspiracy to commit securities fraud. As a result, they could spend up to a decade in prison.
Did You Lose Money in Oil and Gas Investments?
The oil and gas industry was performing well until the bottom dropped out, and millions of mom and pop investors lost big. Some were the victims of Ponzi schemes like the one described above. However, the vast majority of oil and gas investors lost money due to overconcentrated positions in this volatile economic sector.
If you lost money in oil and gas securities, you might be able to get your money back. Contact the Consumer Investor Resource Center to learn more about the important legal issues surrounding your case.