HOUSTON – A gritty federal crime news site, Grimy Times, has exclusively learned that six individuals have been nailed for their involvement in a $6.8 million securities fraud conspiracy, with five new defendants added to the fray.
The initial indictment was returned by a federal grand jury on September 15, 2016, naming Andrew Ian Farmer, 38, and Thomas Galen Massey, 46, for scheming with Chimera Energy Corp. A year later, on April 26, 2017, the grand jury added Eddie Douglas Austin Jr., 66, Carolyn Price Austin, 62, Charles Earl Grob Jr., 37, John David Brotherton, 57, and Scott Russell Sieck, 58, to the list of accused.
In a “pump-and-dump” scheme gone awry, these defendants are accused of spewing false information about Chimera Energy Corp., falsely inflating its stock price with claims of groundbreaking technology like “Non-Hydraulic Extraction,” and fabricating partnerships with the Mexican oil giant PEMEX. The deceitful campaign netted them nearly $6.8 million from unsuspecting investors.
While Massey has already pleaded guilty, facing sentencing on June 26, 2017, his accomplices are awaiting their fate. Brotherton and Grob appeared in court today, while Carolyn Austin and Eddie Austin have a scheduled appearance before U.S. Magistrate Judge Frances Stacy on May 4. Sieck is set to appear in Houston next week.
Each of the conspiracy charges carries a potential sentence of up to 20 years in federal prison and a fine of $250,000. Assistant U.S. Attorney Justin R. Martin is spearheading the prosecution, with support from the FBI, Securities and Exchange Commission, and Financial Industry Regulatory Authority.
Related Federal Cases
- Texas Con Man Accused of $1M MRI Fraud · Kansas
- Edinburg Woman Pleads Guilty in $4M Mortgage Fraud Plot · Pennsylvania
- 16 Indicted in Texas Bank Fraud Ring: $1.3M Losses · Alabama
- Senior Fraud Workshop Alert: U.S. Attorney’s Office in Texas Targets Medicare Scams · Texas
- 31-Year-Old Texas Woman Pleads Guilty to Health Care Fraud · Texas
Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News