Dallas Man Admits to Over $1.3 Million Oil and Gas Embezzlement Scheme

           DALLAS — Kristopher Brian Anderson, 32, of Dallas, Texas, appeared this morning before U.S. District Judge Sidney Fitzwater and pleaded guilty to one count of mail fraud.  U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.

           Anderson faces a maximum penalty not to exceed 20 years in federal prison and a $250,000 fine.  According to the plea agreement, he could also be ordered to pay restitution.  Anderson will remain on bond pending sentencing.  Sentencing is set for January 11, 2018.

           According to documents filed in the case, Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP were privately held Texas corporations that specialized in acquiring and leasing non-operating working interests of oil and gas properties.  P2 Energy Solutions was a privately held company that provided various administrative services to the oil, gas and energy industry including financial and accounting management software for revenue processing and check distribution.  Empery Resource Consultants, LLC was created by Anderson for the purpose of fraudulently claiming false and fictitious petroleum “landmen” services allegedly provided to Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.  

            According to the factual resume, on May 14, 2014, Anderson was hired by Pivotal Petroleum Services as the corporate controller.  As controller, Anderson was responsible for the accounting operations of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.    

            It was part of the scheme to defraud that during the period from August 28, 2014 through March 2, 2017, Anderson created false and fraudulent invoices in the name of Empery Resource Consultants and then submitted these fraudulent invoices to P2 Energy Solutions for payment. During this period, Anderson submitted 142 fraudulent invoices causing the fraudulent payment of $1,389,991.  Anderson spent funds stolen from Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP to support a lavish lifestyle.  Anderson fraudulently obtained an average of over $86,000 per month.  Among other things, these expenses included $451,683 in total cash withdrawals and $958,091 in credit card and debit card charges.

           The case was investigated by the United States Postal Inspection Service.  Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

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