Denver Man Sentenced for Defrauding Texas Oil & Gas Co.

A Denver man was sentenced yesterday 16 months in federal prison for defrauding a Wichita Falls oil and gas company, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Duquesne Energy Services owner Daren Scot Elliott, 55, pleaded guilty to wire fraud in April 2021. He was sentenced Tuesday by U.S. District Judge Mark Pittman, who also ordered the defendant to pay $32,000 in restitution and $20,000 in fines.

According to plea papers, Mr. Elliott admits that he offered to sell a 30,000 gallon propane tank to Gas Corporation of America (G.C.A.), a buyer and seller of oil field equipment located in Wichita Falls. He intimated that he owned the tank, when in fact it was owned by another company, Sampson Resources.

After Mr. Elliott promised to deliver the tank within a week of purchase, a representative of G.C.A. wired $32,000 to Mr. Elliott’s bank account. He never delivered the tank.

Ben Wilson, the owner of G.C.A., testified at Mr. Elliott’s sentencing that the fraud was significant and negatively impacted his business and business’s reputation.

The Federal Bureau of Investigation’s Dallas Field Office, Wichita Falls Resident Agency conducted the investigation. Assistant U.S. Attorney Mary Walters prosecuted the case.