Jeff Rand Sentenced to 57 Months in Prison for Defrauding Investors of $7.9 Million
|U.S. Attorney’s Office August 27, 2012|
Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Jeffrey Scott Rand, 51, formerly of Hot Springs, Arkansas, was sentenced to 57 months in prison for selling interests in a gas well that he did not, in fact, own and for defrauding more than 138 victims of more than $7.9 million. The sentence was imposed in Federal Court in Hot Springs by the Honorable Robert Dawson, United States District Court Judge.
United States Attorney Eldridge stated, “Jeff Rand’s fraudulent scheme preyed on investors, and he has now been sentenced to prison for his actions. This case shows that we will actively prosecute individuals that defraud investors through misrepresentations and deceit.”
Rand was the owner and president of Wave Energy Corporation whose offices were located in Hot Springs, Arkansas, from approximately 2001 through 2004. Rand, on behalf of Wave, fraudulently solicited and sold interests in several gas projects in Texas. Among those was the North Monte Christo Morris No. 1 Well project in Hidago County, Texas. In fact, neither Rand nor Wave had any ownership interest in the well. While Rand solicited and accepted funds from investors by representing that Wave had an interest in this well, Rand never acquired any such interest.
In addition to the Morris No. 1 Well Project, the court’s sentence took into consideration fraudulent schemes involving the Rancho Blanco Well No. 2, Rancho Blanco Well No. 3, Rancho Blanco Well No. 4, and Rancho Blanco No. 1 redrill projects. As alleged in the indictment, Rand falsely represented Wave Energy’s ownership interest in numerous gas wells in order to fraudulently obtain investor funds. In several instances, Rand misapplied and diverted investor funds for personal use and purposes other than those represented to investors.
In addition to the sentence of 57 months in prison, Rand was sentenced to three years of supervised release and ordered to pay $7,921,435.86 in restitution to 138 victims.
This case was investigated by the Arkansas Securities Department and the Federal Bureau of Investigation, and it was prosecuted by Assistant United States Attorney/Criminal Chief Kenny Elser and Assistant United States Attorney/Sr. Litigation Counsel Steven Snyder.