TULSA, Okla.- A former promoter who is accused of promoting fraudulent oil and gas investments will serve prison time for fraud.
Jimmy Morrisett, 53, pleaded guilty to an unlawful monetary transaction and was sentenced to nine years in federal prison for his part in a $7 million fraud.
Morrisett was once the chief executive officer of Red Earth Resources, Inc. and Alpine Petroleum, LLC.
Authorities say he promoted a Ponzi scheme in which investors supposedly received returns from oil and gas properties.
Actually, most of the returns came from money that was provided by investors over the span of four years.
Officials say many of the “investors” were elderly and lost their life savings.
In all, 238 victims were found in Oklahoma and 37 other states.
Morrisett was also ordered to pay restitution to the victims in the amount of $6,874,135.