Stewart Kile Williams, Wire Fraud, Texas 2024

Multi-Million Dollar Wire Fraud Scheme Exposed in West Texas

A former Sweetwater business owner, Stewart Kile Williams, 31, has pleaded guilty to engaging in a $12.3 million wire fraud scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Williams plead guilty to two counts of wire fraud and two counts of engaging in monetary transactions in property derived from unlawful activity.

According to court documents, Williams committed his crimes in the Northern District of Texas after engaging in another fraud scheme in the Southern District of Texas, where he pleaded guilty to four counts of wire fraud. He was sentenced to serve 70 months in federal prison and ordered to pay $2,071,925 in restitution for his crimes in the Southern District of Texas.

While on pretrial release in the Southern District of Texas, Williams formed AZS Trenching, an unregistered sole proprietorship. The company provided freight and trenching services in the West Texas Permian Basin.

In January 2019, Williams and Navarone Capital, LLC, a privately held business in Midland, Texas, entered into an agreement under which AZS Trenching sold its accounts receivable to Navarone in a process called “factoring.” This allowed Williams to receive cash up front from Navarone for a portion of the value of services listed on his invoices.

However, Williams completely fabricated a relationship with HIS Pipeline Company and created bogus invoices for work AZS Trenching did not perform. Williams admitted to fabricating invoices and assuming the identity of an HIS employee. He also acquired a cell telephone with a Louisiana area code where HIS is based and an email address under the assumed name.

Williams used the fraudulent pretenses to encourage Navarone to front money for the bogus invoices. In sum, Williams created 38 fictitious invoices totaling more than $12.3 million. Using the criminally derived funds, Williams purchased a number of items, including farm equipment and a new home.

Williams faces up to 60 years in federal prison for crimes committed in the Northern District of Texas. Internal Revenue Service-Criminal Investigations, United States Postal Inspection Services, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Ann Howey is prosecuting the case.

Defendant: Stewart Kile Williams

Criminal Charges: Two counts of wire fraud and two counts of engaging in monetary transactions in property derived from unlawful activity

City and State: Sweetwater, Texas

Date: [Not specified in the source]

Sentence: Up to 60 years in federal prison and faces additional charges for crimes committed in the Southern District of Texas

Dollar Amounts: $12.3 million, $2,071,925 in restitution

Source: https://www.justice.gov/usao-ndtx/pr/sweetwater-man-pleads-guilty-123-million-wire-fraud-scheme