Home St. Louis Press Releases 2009 Local Investment Broker of Oil and Gas Leases Sentenced on Fraud Charges
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Local Investment Broker of Oil and Gas Leases Sentenced on Fraud Charges

U.S. Attorney’s Office August 24, 2009
  • Eastern District of Missouri

ST. LOUIS, MO—Scott Fleischmann was sentenced to 48 months in prison and ordered to pay restitution to several investors Acting United States Attorney Michael W. Reap announced today.

Fleischmann headed up a scheme to defraud investors of Energy Savings, LLC; Texas Energy Investment Solutions, Inc. and Energy Investment Group during the period January 1, 2001 through January 31, 2006.

Energy Savings, LLC engaged in the sale of electrical service devices. Its principal place of business included 1055 Green Mountain Court, Fenton, Missouri, and 605 Weiss Avenue, St. Louis, Missouri. Texas Energy Investment Solutions, Inc., a subsidiary of Energy Savings, sold working interests in oil and gas leases to investors in Missouri, California and other states. Texas Energy’s principal place of business addresses in Texas, and locally at 2588 Hickory Manor Drive, Ballwin, Missouri, and 605 Weiss Avenue, St. Louis, Missouri. Energy Investment Group was a group of individuals engaged in the investment of money in working interests in oil and gas leases at the Weiss Avenue address in St. Louis.

Fleischmann was the manager and investor contact for Texas Energy and Energy Investment Group. He was also an agent of Energy Savings. The oil and gas wells and the properties involved in Fleischmann’s businesses were all in the state of Texas. As part of his operations, Fleischmann sent various documents, some of which falsely represented ownership interests in oil and gas wells and oil and gas property leases, and some of which falsely represented earned revenues and production figures.

Between January, 2001, and January 31, 2006, seventeen people invested a total of $525,557 in Fleischmann’s businesses. Beginning in 2001, Fleischmann diverted money from his businesses, principally Texas Energy, to pay personal expenses. The business revenue from which Fleischmann paid personal expenses was derived primarily from money provided by investors that the investors intended be invested in working interests in oil and gas wells in Texas. Fleischmann used investor money to purchase a home, vehicles, the payment of personal loans, personal investments in other business ventures, the payment of legal fees relative to an unrelated criminal assault case and the illegal purchase of controlled substances.

SCOTT FLEISCHMANN, St. Louis, Missouri, pled guilty in April to one felony count of mail fraud, and appeared today for sentencing before United States District Judge Carol E. Jackson. In addition to his prison sentence, Fleischmann was ordered to pay $429,304 to the victims.

Reap commended the work performed on the case by the Postal Inspection Service, the Federal Bureau of Investigation and Assistant United States Attorney Hal Goldsmith, who handled the case for the U.S. Attorney’s Office.

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