The former president of a Texas energy company was sentenced today to six years and six months in prison for his role in an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
According to court documents, Matthew Clark, 56, of Needville, Texas, conspired with others to direct his employer’s trades to Houston-based Classic Energy LLC, a brokerage firm owned and operated by Matthew Webb, 54, of Tiki Island, Texas, in exchange for illegal kickbacks. As part of his prohibited trading activities, Clark conspired with John Ed James, 54 of Katy, Texas, and Peter Miller, 49, of Puerto Rico. Clark received more than $5.5 million in illegal kickbacks for his trades.
Clark was also ordered to pay $6,532,360 in restitution and to forfeit $5,543,662.
Clark pleaded guilty on March 15 in the Southern District of Texas to conspiracy to commit honest services wire fraud, prohibited commodities transactions, and commodities insider trading. Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act. James pleaded guilty to conspiracy to commit commodities fraud and wire fraud and is scheduled to be sentenced on July 1. Miller pleaded guilty to conspiracy to commit commodities fraud and is scheduled to be sentenced on June 20.
In two other related cases, Marcus Schultz, 44, of Houston; and Lee Tippett; 64; of Jacksonville; Florida; pleaded guilty in July 2020 and August 2021 respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and violating various provisions of the Commodity Exchange Act; he is scheduled for sentencing on July 1. Tippett pleaded guilty to conspiracy to commit commodities fraud and honest services wire fraud; he was sentenced on Feb. 20th this year; receiving two years nine months imprisonment.
Principal Deputy Assistant Attorney General Nicole M. Argentieri head Justice Department Criminal Division U.S Attorney Alamdar S Hamdani Southern District Texas Assistant Director Michael Nordwall FBI Criminal Investigative Division Special Agent Charge Douglas Williams FBI Houston Field Office made announcement.
The FBI Houston Field Office investigated the case.
Assistant Chief Leslie S Garthwaite Trial Attorneys Della Sentilles David Hamstra Criminal Division Fraud Section Assistant U.S Attorney Grace Murphy Southern District Texas prosecuted case