Grimy Times has obtained information on a Fort Worth oil and gas man who has been sentenced to over 17 years in federal prison for running a multi-million dollar Ponzi-type scheme.
Billy Marcum, Jr., 67, of Fort Worth, Texas, pleaded guilty in December 2022 to wire fraud. On Thursday, he was sentenced to 210 months in prison by U.S. District Judge Mark Pittman, who also ordered him to pay more than $16 million in restitution.
Marcum, the owner of several oil and gas companies, including Navarro Minerals, Caddo I, Bluecreek Operating, Fullspike Energy, Viejo Services, and Viejo Exploration, solicited money from investors, telling them their funds would be used to purchase oil and gas leases and to pay for well oil repairs and returns would be paid out of profits from the ensuing oil and gas sales.
A classic Ponzi scheme, instead of purchasing the leases, Marcum used new investors’ money to fund earlier investors’ returns, lulling them into believing their investments were sound and that they should continue investing with him. He also used some of the investment money to pay personal expenses.
In furtherance of the scheme, Marcum fabricated reports about oil production and sales and sent them to investors. The false run statements noted purported lease name and number, the gross volume of product taken, sales value, taxes paid, dates, and net amount to be paid to the operator. Marcum also recorded false lease assignments related to his scheme in counties throughout Texas to disguise his crime.
At sentencing, prosecutors said Marcum defrauded over 150 victims, collecting nearly $30 million in investor funds and inflicting over $16 million in losses.
A co-conspirator, Jay Taylor, also pleaded guilty to wire fraud and was sentenced in April to eight years in federal prison.
Related Federal Cases
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas, 2012 · Oklahoma
- Jason Jarin, Medicaid Fraud and Illicit Transition Procedures, Texas 2023 · Oklahoma
- Albert Davis, Wire Fraud, Kansas City, MO, 2023 · Texas
- Michael Scott Calhoun, Wire/Mail Fraud, OK, 2023 · Oklahoma
- Christopher Ferguson, Securities Fraud, New York 2020 · Texas
Key Facts
- State: Texas
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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