Austin attorney Robert Allen Helms, 52, and his business partner Janniece S. Kaelin, 54, have pleaded guilty to federal charges of defrauding investors in companies that supposedly purchased oil and gas royalties.
The scheme, which ran from January 2010 to December 2013, allegedly raised millions of dollars from investors through the fraudulent scheme, according to the indictment filed in this case.
Helms, a licensed attorney in Texas since 1995, and Kaelin told investors that they would use the invested funds only for specific business purposes, but the defendants secretly used substantial sums for their own personal expenses.
The scheme involved forging and counterfeiting documents to create the appearance of mineral and royalty purchases, as well as moving money between accounts and business entities for no purpose other than creating the false appearance of business operations.
According to a report filed by the receiver, Helms and Kaelin raised more than $30 million from investors as part of the scheme.
The scheme was brought to an end in December 2013, when the United States Securities and Exchange Commission (SEC) sued Helms, Kaelin, and their companies, including Vendetta Royalty Partners, Ltd. and Iron Rock Royalty Partners, LP.
Helms and Kaelin, both of whom remain on bond pending sentencing, face up to five years in federal prison for each count of conviction and a yet-to-be-determined-amount of restitution to their victims.
Sentencing is scheduled for June 28, 2017, and the case was investigated by the FBI, the United States Secret Service, and the Texas State Securities Board, with Assistant United States Attorneys Alan M. Buie and Grant Sparks prosecuting on behalf of the Government.
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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