FOR IMMEDIATE RELEASE
August 27, 2012
Conner Eldridge, United States Attorney for the Western District of Arkansas, announced
that Jeffrey Scott Rand, 51, formerly of Hot Springs, Arkansas was sentenced to 57 months in
prison for selling interests in a gas well that he did not, in fact, own and defrauding more than 138
victims of more than $7.9 million. The sentence was imposed in Federal Court in Hot Springs by
the Honorable Robert Dawson, United States District Court Judge.
United States Attorney Eldridge stated, “Jeff Rand’s fraudulent scheme preyed on investors,
and he has now been sentenced to prison for his actions. This case shows that we will actively
prosecute individuals that defraud investors through misrepresentations and deceit.”
Rand was the owner and president of Wave Energy Corporation whose offices were located
in Hot Springs, Arkansas, from approximately 2001 through 2004. Rand, on behalf of Wave
fraudulently solicited and sold interests in several gas projects in Texas. Among those was the
North Monte Christo Morris No. 1 Well project in Hidago County, Texas. In fact neither Rand nor
Wave had any ownership interest in the well. While Rand solicited and accepted funds from
investors by representing that Wave had an interest in this well, Rand never acquired any such
In addition to the Morris No. 1 Well Project, the Court’s sentence took into consideration
fraudulent schemes involving the Rancho Blanco Well No. 2, Rancho Blanco Well No. 3, Rancho
Blanco Well No. 4, and Rancho Blanco No. 1 redrill projects. As alleged in the indictment, Rand
falsely represented Wave Energy’s ownership interest in numerous gas wells in order to fraudulently
obtain investor funds. In several instances, Rand misapplied and diverted investor funds for
personal use and purposes other than those represented to investors.
In addition to the sentence of 57 months in prison, Rand was sentenced to 3 years of
supervised release and ordered to pay $7,921,435.86 in restitution to 138 victims.
This case was investigated by the Arkansas Securities Department and the Federal Bureau
of Investigation and it was prosecuted by Assistant United States Attorney/Criminal Chief Kenny
Elser and Assistant United States Attorney/Sr. Litigation Counsel Steven Snyder.
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