SAVANNAH, GA – A slick $15 million oil investment scheme has crumbled, leaving a trail of ruined savings and four men facing federal charges. Richard Paul Underwood, 65, of Fort Lauderdale, Florida, and Colin P. Purcell, 56, of Simpsonville, Kentucky, were arrested yesterday by U.S. Secret Service agents following the unsealing of a federal indictment.
The arrests come on the heels of guilty pleas from David R. Greenlee, 41, of Seguin, Texas, and David A. Stewart, 46, of Portland, Kentucky, who ratted out their co-conspirators earlier this month before U.S. District Court Judge Lisa Godbey Wood. Greenlee and Stewart are awaiting sentencing after a presentence investigation is completed. They face up to five years in prison and a $250,000 fine for conspiring to commit securities fraud, wire fraud, mail fraud and money laundering.
From 2012 to 2016, Underwood, Purcell, Greenlee, Stewart, and their crew allegedly peddled bogus investments in oil and natural gas projects across Texas, Oklahoma, and Kansas. They weren’t just selling oil; they were selling lies. The indictment details a pattern of assumed identities, fabricated credentials, and deliberate concealment of the fact that the companies were run by convicted felons with a history of investment scams. Over $15 million was fraudulently obtained from unsuspecting investors, then siphoned off for the defendants’ personal gain.
“While this U. S. Attorney’s Office works hard with our federal and state law enforcement partners to shutter investment fraud schemes and to hold fraudsters accountable, our work often follows the disappearance of an unsuspecting victims’ life savings,” warned Acting U.S. Attorney James D. Durham. “Investment ideas sounding too good to be true usually are. Be vigilant when investing your money. And when you see a scam, let law enforcement know.”
Glen Kessler, Savannah Resident-Agent-in-Charge of the United States Secret Service, cautioned investors to be wary of investments promising exceptionally high returns coupled with elaborate, yet vague, explanations. “A company’s use of national advertising or glossy brochures should not serve as proof that they are offering legitimate investments,” Kessler stated. “If the subject or company pushing the investment is promising consistently high returns with little or no losses and you are being told overly complicated methods of how the investment works, that should raise a red flag for any investor.”
James Dorsey, Acting Special Agent in Charge of IRS Criminal Investigation, emphasized the prevalence of investment fraud and the agency’s commitment to bringing perpetrators to justice. “Unfortunately, investment fraud is pervasive and entrenched in our society as it promises the golden ticket to instant wealth,” Dorsey said. “While we may not be able to make all the victims whole we can and will hold the perpetrators accountable.” Underwood and Purcell each face a maximum sentence of 20 years’ imprisonment and a fine of up to $250,000 if convicted of conspiracy to commit wire fraud and mail fraud. The defendants will also be required to forfeit the proceeds of their crimes and pay restitution to their victims upon conviction.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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