Joel Matthew Eilerts, Fraud & Kickbacks, Oklahoma 2019
A former SandRidge Energy employee has been sentenced to 21 months in federal prison for defrauding his former employer. Joel Matthew Eilerts, 40, of San Diego, California, pleaded guilty to conspiracy to commit wire fraud and honest services wire fraud on October 25, 2017.
Eilerts worked in SandRidge's land department from 2009 to 2014, holding various positions including Senior Landman, Land Supervisor, and Land Manager. His position gave him access to confidential information regarding areas where SandRidge hoped to obtain oil and gas leases.
As part of the scheme, Eilerts hired third-party land brokers to obtain leases on behalf of SandRidge. He told the brokers to secure the lease for less than SandRidge was willing to pay, and they would keep the difference as profit. Eilerts took a 1/3 kickback from the brokers' profit, earning him at least $345,000.
The scheme also involved Eilerts directing the brokers to obtain leases from individuals who did not own the leased minerals. SandRidge issued checks to the brokers, but they did not return the money when it was discovered that the lessors did not own the minerals. Eilerts and the brokers kept the money, with Eilerts retaining $148,000.
U.S. District Judge Robin J. Cauthron sentenced Eilerts to 21 months in prison on June 20, 2019. He was also ordered to pay $493,707.59 in restitution to SandRidge. After release from prison, Eilerts will serve two years on supervised release, during which he must complete 104 hours of community service.
Related cases involving Robert S. Kerr IV and Brian Eischeid are still pending. The cases were the result of an investigation by the FBI Oklahoma City Division and were prosecuted by Assistant U.S. Attorneys Jessica L. Perry and Kerry A. Kelly.
Key Facts
- State: Oklahoma
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →