David Owen West, Embezzlement, Oklahoma 2021

A Drumright man has admitted to stealing more than $400,000 from his former employer, Petco Petroleum, an Illinois oil and gas company.

David Owen West, 59, pleaded guilty to two counts of mail fraud and one count of money laundering before U.S. District Judge Claire V. Eagan in federal court.

West carried out two schemes against Petco Petroleum, where he was employed for nearly 30 years. In one scheme, he produced and submitted fraudulent invoices for services that were never rendered, totaling $129,038, which his employer paid in full and West pocketed.

In a second scheme, West hired trucks to haul oil stolen from his employer’s oil leases to a reclaimer, who then paid him $266,802 for the oil. West then charged Petco Petroleum for the transport costs of their own stolen oil.

The investigation revealed that West used a company he founded, Flash Electric Services, LLC, to submit 116 fraudulent invoices to Petco Petroleum, totaling $129,038.

West acquired a property in Drumright, Oklahoma, in early 2015 and registered Flash Electric Services, LLC, using the address in Drumright, with the Oklahoma Secretary of State on October 27, 2015.

West’s schemes were uncovered through an investigation led by IRS-Criminal Investigation, with assistance from the FBI. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.

The sentencing hearing for West is set for May 13, 2021.

“David West was a trusted employee for close to 30 years at Petco Petroleum. He violated that trust by engaging in schemes to defraud his employer as West helped himself to more than $400,000 of the company’s money,” said U.S. Attorney Trent Shores.

“This prosecution exemplifies this office’s resolve to hold responsible individuals who profit from criminal deceit and embezzlement. Thanks to the work of white-collar prosecutor Charles McLoughlin, IRS-Criminal Investigation and the FBI, West is now a convicted felon.”

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