Operating Partner of Oil and Gas Maintenance Business Sentenced to Prison for Wire Fraud
GRAND JUNCTION – The U.S. Attorney’s Office for the District of Colorado announces that Cory Thompson, age 44, of Fruita, was sentenced to 41 months in federal prison and ordered to pay over $1.9 million in restitution for wire fraud.
According to the plea agreement, Thompson entered into a business partnership with the victim to operate a company called DACK Energy Services, LLC (“DACK”), which conducted maintenance services for oil and gas companies in Colorado and surrounding areas. The defendant acted as the operating partner. In that role, Thompson was solely responsible for managing work production, hiring employees, procuring equipment, and establishing contracts. The victim, in turn, provided investment capital for the business.
From January 2014, to January 2016, the defendant submitted invoices to the victim, The invoices purportedly represented work performed by DACK. The victim relied on these invoices, believing they reflected accounts receivables and future income for DACK. However, many of these invoices were completely fabricated and did not represent any future income the company would receive. Often, the defendant had not established any business relationship with the companies identified in the fabricated invoices. In total, more than $1.4 million in fabricated invoices were presented by the defendant. Based on the false information provided by the defendant, the victim borrowed $1.25 million and invested that money into the company.
In addition to creating false invoices, the defendant funneled proceeds from the company into an account that he controlled. Thompson used these monies for his personal benefit. In addition, he ensured friends and family members were on DACK’s payroll, but these individuals performed little, if any, actual work. Instead, they would perform personal services for the defendant and his immediate family.
“In addition to losing their freedom, fraudsters convicted in Colorado often give up the property they purchase with fraudulent proceeds,” said United States Attorney Cole Finegan. “The defendant in this case has to give up trucks, jet skis, a car, an SUV, a boat, and pay nearly two million dollars in restitution, as well as serve a long time in federal custody.”
“The sentence handed down in this case rightly holds Mr. Thompson accountable for defrauding his business partner of millions of dollars that went to support a lavish lifestyle,” said FBI Special Agent in Charge Michael Schneider of the Denver Division. “Our office works diligently to seek justice for members of our community who have been impacted economically or otherwise by criminal activity. Thank you to all who were involved in ensuring the victims in this case recovered some of their losses.”
United States District Court Judge Christine M. Arguello sentenced the defendant on December 8, 2021. In addition to a term of incarceration and restitution, the Court ordered the forfeiture of numerous assets purchased using money the defendant obtained as part of his scheme, including a boat, jet skis, and several vehicles. At the conclusion of the sentencing hearing, the defendant was remanded into custody to immediately begin serving his sentence.
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Jeremy Chaffin handled the prosecution and Assistant United States Attorney Elizabeth Young handled the forfeiture.
Case Number: 19-cr-00082-CMA-GPG
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