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Justice News

Department of Justice
U.S. Attorney’s Office
District of Kansas

FOR IMMEDIATE RELEASE
Thursday, May 25, 2017

Pratt Company Pleads Guilty In Oil and Gas Fraud Scheme

WICHITA, KAN. - A Pratt company pleaded guilty Thursday in an oil and gas fraud scheme, U.S. Attorney Tom Beall said.

 

Sonstone Trading LLC pleaded guilty to one count of wire fraud. In the plea, the company admitted it agreed to sell 3,000 barrels per month of crude oil to Parnon Industries. In fact, what Sonstone provided to Parnon was not crude oil. It was raw gas oil (RGO), which is a by-product obtained from recycling used motor oil. At sentencing, the court will determine the amount of loss. The government maintains the loss is more than $994,000. Sentencing is set for Aug. 10.

 

Charges against Sonstone executive David Lawson were dismissed.

 

For more information on oil and gas fraud from the Financial Fraud Enforcement Task Force, see www.stopfraud.gov/oil-gas-fwg.html .

 

Beall commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.

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Updated May 25, 2017