Two Fraudsters Caught in Kentucky Oil Scam after Lavish Party Televised
Two men accused of investment fraud were convicted on May 11th after a
three-week trial in Lexington. The investigation surrounding Gary Milby
and Bryan Coffman was spurred on after Milby threw an expensive 16th birthday
party for his daughter that was televised on MTV. Milby apparently used
investor's money to finance the party.
Coffman and Milby are said to have defrauded 500 people out of $33 million through a scam that promised high yields from oil field investments. The pair allegedly operated a scheme in which previous investors were paid off with money from new investors. The two are alleged to have pocketed the rest for personal use on the above-mentioned party, as well as cars and jewelry. The government claims that there is not enough oil in the entire state to make good on the pair’s promises.
Milby, an oilman, was convicted on multiple counts of wire fraud, mail fraud, and securities fraud. Coffman, a lawyer, was convicted on counts of fraud and money laundering.
Milby's lawyer said his client "told a lot of whoppers" in the course of the making sales, but that, in itself, is not criminal. Milby's lawyer states his client is disappointed by the outcome. Coffman's lawyer states he expects his client to appeal. Sentencing is currently set for August 24th.
Meyer Wilson represents victims of investment fraud nationwide. If you think you may have a case, contact us today to discuss your concerns.