Mark Cornell Pleads Guilty to Securities Fraud, Frankfort KY, 2023

FRANKFORT — In a stunning turn of events in the world of financial intrigue, Mark Cornell, a central Kentucky oil operator, has admitted his role in a multi-million dollar securities fraud scheme that siphoned millions from unsuspecting investors.

Cornell, who pleaded guilty on Tuesday before U.S. District Judge Gregory Van Tatenhove, was part of a trio that conned approximately 200 investors nationwide out of over $3 million. The mastermind behind the operation, John G. Westine, Jr., and his associate Michael Hicks, were already ensnared by the law.

In January this year, Westine was convicted by a jury of mail fraud, money laundering conspiracy, and securities fraud. Hicks pleaded guilty to mail fraud in November 2014 and is set for sentencing next month. Cornell’s own sentencing looms in June with a maximum penalty of 20 years imprisonment.

Cornell confessed that his role involved reworking oil wells, exaggerating their production levels, and providing fraudulent guarantees to Westine and Hicks. These exaggerated figures were then used to sell royalty interests in the wells to investors through aggressive telemarketing tactics.

The investigation began with complaints filed by investors with the Kentucky Department of Financial Institutions, Division of Securities. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Dugan Wong, Inspector in Charge of the U. S. Postal Inspection Service; and Charles Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly announced Cornell’s guilty plea.

This case has been a collaborative effort between the U.S. Postal Inspection Service, led by Postal Inspector Roberta Bottoms, and the Kentucky Department of Financial Institutions, Division of Securities. Assistant U.S. Attorneys Ken Taylor and Neeraj Gupta are representing the federal government in this matter.