Dyer Duo Dinged for $2.3M Oil Scheme

Oklahoma City, OK – A pair of cousins, one an attorney and the other a landman, will serve time behind bars for their roles in a brazen scheme to defraud Oklahoma City-based Continental Resources (CLR) out of millions.

Blaine Dyer, 42, and James Dyer, 39, both of Oklahoma City and Edmond respectively, were sentenced to 60 months and 18 months in federal prison for conspiring to commit honest services wire fraud, announced U.S. Attorney Robert J. Troester.

The Superseding Indictment alleged that Blaine, an attorney who specialized in oil and gas title opinions, and his cousin, Jimmy, who worked as a landman, conspired together to commit wire fraud against CLR. In November 2013, Blaine and Jimmy received CLR’s confidential drilling and leasing plans from an employee of the company.

Public records show that with knowledge reaped through the illegally obtained CLR plans, Jimmy sought out and negotiated with landowners across Oklahoma, and purchased leases that CLR intended to acquire. To avoid detection, Blaine, Jimmy, and others, formed several shell companies to facilitate these transactions.

The Superseding Indictment further alleged that in 2014, Blaine, Jimmy, and others, sold some of the leases purchased using CLR’s information back to CLR. As part of the agreement, CLR continued to make royalty payments on the leases to the defendants and others through the conspirators’ shell companies.

As part of their plea deals, Blaine and Jimmy admitted to participating in the conspiracy to purchase leases using CLR’s stolen information, then selling those leases back to CLR, and accepting royalties on the leases through 2020. The Court also ordered the defendants to pay $2,316,185.43 in restitution to CLR, and ordered Blaine and Jimmy to forfeit $1,661,263.42 and $230,761.74, respectively.

“The defendants’ greed resulted in an elaborate scheme to exploit insider information and defraud Continental simply to enrich themselves,” said U.S. Attorney Troester. “The significant sentences imposed by the Court should serve as a strong deterrent to those who seek personal gain and profit by defrauding Oklahoma businesses.”

This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Julia E. Barry and Brandon Hale prosecuted the case, commending the FBI’s work in unraveling the scheme and holding the defendants accountable.”

Blaine and Jimmy were ordered to self-surrender to the Bureau of Prisons to begin serving their sentences, Blaine within 30 days, and Jimmy within 60 days. The exact terms of their prison sentences were 60 months and 18 months respectively, with two years of supervised release to follow.

Continental Resources, a major player in the Oklahoma oil and gas industry, suffered significant financial losses as a result of the Dyer brothers’ scheme.

According to public filings, the defendants’ actions resulted in a total loss of $2.3 million to CLR. The Court’s decision sends a strong message that corporate espionage and insider trading will not be tolerated in Oklahoma.

Assistant U.S. Attorney Julia E. Barry and Brandon Hale prosecuted the case, with the FBI’s investigation leading to the conviction of the Dyer brothers.

A reference to public filings is made for additional information on this case.