Prosecutors say a Dallas businessman who dubbed himself the "Frack Master" and went on TV to discuss oil and gas has pleaded guilty to fraud and tax evasion charges in an $80 million scam.
Forty-one-year-old Christopher A. Faulkner entered his plea Tuesday in Dallas after reaching a deal. He'll serve up to 12 years in federal prison for securities fraud, money laundering, and tax evasion.
Prosecutors say that between 2011 and 2016, Faulkner raised more than $80 million from working interest investors, plus millions more related to potential royalties, then diverted $23.8 million for himself to "fund his lavish personal lifestyle."
He was arrested in June at Los Angeles International Airport.
A Securities and Exchange Commission lawsuit against Faulkner was settled Tuesday. Under the agreed final judgment, which is subject to court approval, he must repay nearly $24 million.
The SEC also said Faulkner is barred from serving as an officer or director of any SEC-reporting company and from participating in any offering of a penny stock.
The SEC also charged 11 other individuals and entities for their roles in the misconduct, reaching settlements with a majority of them.
Investor's are urged to visit the SEC's Investor.org website to learn about certain risks and possible fraudulent activity involving private oil and gas offerings.
