Former President of Energy Company Sentenced to 6 Years and 6 Months in Prison for $5.5M Kickback and Insider Trading Scheme
HOUSTON, Texas – Matthew Clark, 56, of Needville, Texas, was sentenced to six years and six months in prison for his role in an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
According to court documents, Clark conspired with others to direct his employer’s trades to Classic Energy LLC, a brokerage firm owned and operated by Matthew Webb, 54, of Tiki Island, Texas, in exchange for illegal kickbacks. Clark received more than $5.5 million in illegal kickbacks for his trades.
Clark also conspired with John Ed James, 54 of Katy, Texas, and Peter Miller, 49, of Puerto Rico. Clark was ordered to pay $6,532,360 in restitution and to forfeit $5,543,662.
On March 15, 2024, Clark pleaded guilty in the Southern District of Texas to conspiracy to commit honest services wire fraud, prohibited commodities transactions, and commodities insider trading.
The FBI Houston Field Office investigated the case, which involved several others, including Marcus Schultz, 44, of Houston, and Lee Tippett, 64, of Jacksonville, Florida. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act and is scheduled to be sentenced on July 1. Tippett pleaded guilty to conspiracy to commit commodities fraud and honest services wire fraud and was sentenced on February 20 to two years and nine months in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri; U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Douglas Williams of the FBI Houston Field Office made the announcement. The case was prosecuted by Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grace Murphy for the Southern District of Texas.
Matthew Clark, 56, of Needville, Texas, is a former president of an energy company. He was sentenced for conspiracy to commit honest services wire fraud, prohibited commodities transactions, and commodities insider trading in the Southern District of Texas on March 15, 2024. Clark received six years and six months in prison and was ordered to pay $6,532,360 in restitution and to forfeit $5,543,662.
The charges against Clark include:
– Conspiracy to commit honest services wire fraud
– Prohibited commodities transactions
– Commodities insider trading
Clark’s sentence was announced by Principal Deputy Assistant Attorney General Nicole M. Argentieri, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, and Special Agent in Charge Douglas Williams of the FBI Houston Field Office.
Key Facts
- State: Texas
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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