Matthew Wayne Fox, Oil & Gas Investment Fraud, Texas 2020

A Plano, Texas man has been sentenced to prison for his role in a massive oil and gas investment fraud scheme.

Martin Wayne Fox, 47, was sentenced to 33 months in federal prison on March 9, 2020 by U.S. District Judge Sean D. Jordan.

Fox was also ordered to pay $862,150 in restitution, according to a statement released by U.S. Attorney Brit Featherston.

According to court documents, Fox formed a company called Wayne Energy in 2015, which was supposed to specialize in oil and gas exploration. However, Fox had previously been the CEO of a company called Frisco Exploration, which went out of business.

From March 2015 to October 2016, Fox raised approximately $949,650 from investors to form a joint venture to convert an oil well to a natural gas well in Upshur County, Texas. Fox solicited the funds through various literature and emails sent to potential investors.

The emails sent by Fox contained several misrepresentations about the joint venture, including ownership of the well, the cost of converting the well, the production of a similar well, and actual work done on site. Fox also falsely claimed that Wayne Energy was a licensed operator with the State of Texas Railroad Commission.

An investigation by the Securities and Exchange Commission (SEC) showed that the majority of the money raised by investors was used for Fox’s personal use.

The SEC launched an investigation into Fox following complaints about the investments in the natural gas well. The SEC obtained a judgment against Fox in 2018 for his conduct in soliciting investors. The SEC then referred the case to the Federal Bureau of Investigation, which launched a criminal investigation resulting in Fox’s indictment.

This case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission and prosecuted by Assistant U.S. Attorney William R. Tatum.

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