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Texas Man Charged with $900,000 Investment Scam
A 50-year-old Texas man has been charged with fraud and obstruction of justice in an indictment unsealed today involving two investment companies that allegedly defrauded investors, resulting in losses of approximately $900,000.
According to the indictment, from 2013 to 2014, Stanley Jonathan Fortenberry ran Wattenberg Energy Partners, which raised funds for oil and gas drilling projects in northern Colorado. Fortenberry allegedly set up the company in his son’s name because Texas and Pennsylvania state securities regulators had previously ordered Fortenberry to not sell unregistered securities in oil drilling projects.
The indictment alleges that Fortenberry used a network of salespeople to call and solicit individuals to invest in drilling projects. Rather than designate investors’ funds for drilling projects as promised, the indictment alleges that Fortenberry spent the vast majority of the funds on himself and the company’s fundraising operation.
Fortenberry also allegedly ran a separate fraudulent scheme conducted through Premier Investment Fund from 2010 to 2012. According to the indictment, through Premier, Fortenberry raised funds from investors for social media projects run by another company connected to the country music industry.
The indictment alleges that Fortenberry misrepresented to investors the profitability of the company and how he would be compensated. The company earned no profits and Fortenberry spent approximately half of the funds raised on himself, according to the indictment.
In October 2014, Fortenberry allegedly gave false and misleading testimony in an administrative proceeding before the U.S. Securities and Exchange Commission (SEC), which was investigating Fortenberry at the time for misusing funds that investors had entrusted to Premier.
Fortenberry was arrested this morning and made his initial appearance in court this afternoon. The FBI’s Dallas Office investigated the case, and Assistant U.S. Attorney Sean Long of the Northern District of Texas are prosecuting the case, with assistance from the SEC.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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