Brian J. Polito, Mail Fraud, Texas 2015

Grimy Times Logo

Oil and Gas Investment Scam Unravels: Allen Man Sentenced to 84 Months in Federal Prison and Ordered to Pay $8,768,351 in Restitution

Brian J. Polito, a resident of Allen, Texas, has been sentenced to 84 months in federal prison and ordered to pay $8,768,351 in restitution for running an oil and gas investment fraud scheme. Polito pleaded guilty in May 2015 to a single count of mail fraud.

According to the U.S. Attorney for the Northern District of Texas, Polito’s scheme involved selling interests in oil and gas projects in which he had no ownership or interest. He would research companies on the Texas Railroad Commission’s website, identify drilling permits, and then solicit investments from potential investors. To convince them to invest, Polito would misrepresent the ownership and interest of GC Resources, his oil and gas investment firm.

Polito’s scheme involved creating fake contracts, using Photoshop to forge signatures of company employees, and paying investors with other fraudulently obtained funds in a manner similar to a Ponzi scheme. He raised millions from victim investors, using the money to fund his lavish lifestyle.

When investors asked to see the well site, Polito would take them to the actual site, controlled by the company he had deceived. He even obtained production records from the Railroad Commission’s website and provided them to investors, all while having no interest in the wells.

As part of his sentence, Polito must surrender to the Bureau of Prisons on January 6, 2016. The government has also recovered $664,000 from the liquidation of certain vehicles and a bank account, which will be used to pay restitution to victims.

Polito’s spending habits were extravagant, with evidence showing he owned multiple luxury vehicles, including a 2014 Lamborghini Aventador, a 2014 Lamborghini Gallardo, and a 2014 Porsche Panamera S E-Hybrid, among others.

In conclusion, Brian J. Polito’s actions have resulted in significant financial losses for his victims. His sentence serves as a reminder of the importance of due diligence and the consequences of investment scams.

Source: Dallas, Texas – U.S. Attorney’s Office

Related Federal Cases