HOUSTON – Richard M. Plato, 65, of Baytown, Texas, is headed to federal prison for nearly 20 years following his convictions on several counts related to a mail and securities fraud conspiracy, United States Attorney Kenneth Magidson announced today.
A federal jury convicted Plato on September 24, 2012, after approximately four hours of deliberation and 10 days of trial. Plato was subsequently convicted on one count of mail fraud and five counts of mail fraud.
At the hearing today, the government detailed some of Plato’s previous offenses that have occurred over the past 24 years, and stated he stole money from investors in this case and spent it on ‘wine, women and song.’
U.S. District Judge David Hittner, who presided over the trial, handed Plato a 235-month sentence. The judge noted that Plato had already committed three massive, multi-million dollar frauds before the one with which he was sentenced today. He read from some of the victims’ statements detailing the consequences Plato’s actions have had on them.
One victim noted that senior citizens like him had used their savings to try to provide some comfort, but now have to modify their standard of living, while Plato continued to live his opulent lifestyle. Another stated that he had hoped to provide for his grandson’s education, but now that money is gone. He added that while this may have been short-term for Plato, the impact on his family and other victims carries life-long consequences.
Plato owned and controlled Momentum Production Corporation in Baytown. The Texas State Securities Board (TSSB) began investigating Plato in the fall of 2008 following several complaints by investors with Momentum. Investors from several states reported purchasing securities from Momentum, only to have Momentum default on the notes. The TSSB referred the matter to the United States Postal Inspection Service (USPIS) in 2010.
Plato was ordered to pay restitution in the amount of $3,051,000.74. He will also be on supervised release for three years following completion of his prison term. Agents testified that Plato made periodic payments on the notes to keep his investors satisfied, using the money of other investors and the operating income from the various oil and gas interests. In 2006, however, those interests evidently stopped generating their projected income.
Plato had been convicted of fraud on three other occasions, once each in Texas, Florida, and Louisiana. At the time the securities were sold, Plato was on supervised release and owed almost $30 million in restitution. Following his release from federal prison in 2002, Plato began acquiring various oil and gas interests in South Texas. Sometime thereafter, Plato formed Momentum and began directly and indirectly soliciting vulnerable persons throughout the United States to purchase promissory notes.
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Key Facts
- State: Texas
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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