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Investors Lose Millions in Oil Well Scheme

by Elizabeth Alford on August 10, 2015

Investors beware! If you are looking to buy property for the purpose of cashing in on the mineral rights, it is crucial that you do the proper research.

Related: Oil and Gas Investment Basics

Four men were recently found guilty by a Kentucky court of swindling millions of dollars in an oil investment scheme. From 2012- 2014, the group used high-pressure telephone calls to sell investments in oil wells in Barren, Monroe and Cumberland counties to more than 200 people. Their sales presentations included false guarantees and exaggerated production numbers. They were able to obtain leases for mineral rights of dormant wells, drilling permits and lease agreements to create the impression that substantial amounts of oil were being produced.

Michael Hicks of Cincinnati was ordered to pay more than $3 million in restitution to the victims and will be on supervised release for three years following his imprisonment. Two others were found guilty of mail fraud, securities fraud and conspiracy to launder money and a third for securities fraud. John Westine, Henry Ramer and Mark Cornell will be sentenced in August or September.

Don’t be a victim. Join the Mineral Rights Forum today to aid your research before you buy, sell or lease!

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