Dallas Businessman Sentenced to 20Years in Federal Prison for Investment Scam

Posted by Chris Morales on Sun, Feb 19, 2012 @ 09:00 AM
investment scam

A Dallas businessman charged for an investment scam has been sentenced to 20 years imprisonment. The accused, Alan Todd May, was reportedly involved in an investment fraud of $7 million. The sentence was pronounced by a federal judge last week. Restitution issues will be addressed by the court later.

May in Custody Since June 2010

Alan Todd May was arrested in San Francisco in June 2010 in connection with the investment fraud case. After a few weeks, May was indicted on 2 counts of mail fraud and a single count of wire fraud. Since that time, the accused has been in custody.

May is the former president and founder of Prosper Oil & Gas, Inc. May pretended that he owned and operated gas and oil leases in different states such as Arkansas, Colorado, Oklahoma and Texas. Through his fraudulent investment schemes, the accused obtained about $7 million from investors. The amount was used for purchasing royalty interest in gas and oil leases.

Royalty Interests Sold through False Statements

The royalty interests were sold by May and his associates through false statements. For example, investors were told that their royalty interests will yield more than 25% annual returns. About 170 investors were scammed by May this way. Mineral interests that were not owned by Prosper Oil & Gas, Inc were also sold.

A separate investigation was opened by the Securities and Exchange Commission for Prosper Oil and Gas and its owner in May 2010. An allegation was raised against May stating that $6 million was raised by him through fraudulent security offerings to a minimum of 99 investors across the US. Prosper Oil and Gas and other assets of May were ordered to be held in receivership by federal court.

Christopher Morales is an experienced San Francisco Criminal Lawyer. If you are looking for an expert San Francisco White Collar Criminal Defense to discuss similar white collar crime cases, get in touch with us. 

Tags: fraud, San Francisco Criminal Lawyer, wire fraud