A former bigwig at a Texas energy firm has copped to conspiring in a lucrative kickback affair, netting over $5.5 million while also playing fast and loose with natural gas commodities trading. Matthew Clark, 56, from Needville, entered a guilty plea on March 15, fessing up to directing trades to a specific brokerage for some sweet under-the-table profits.
Clark, who called the shots at his unnamed employer, shook hands with Classic Energy LLC, ensuring they were the go-to for business, all while lining his pockets with illegal kickbacks. The man pulling the strings at Classic Energy, Matthew Webb, 54, of Tiki Island, helped orchestrate the shady dealings. According to a press release by the U.S. Attorney's Office, the scheme involved prearranged trades and misused inside info to boost profits for Clark and his cronies.
U.S. Attorney Alamdar S. Hamdani didn't mince words describing the fiasco: “Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives, and his employer’s proprietary insider information,”
“When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don’t just harm the company—they undermine the integrity of our financial markets. This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It will not be the last.” explained Principal Deputy Assistant Attorney General Nicole M. Argentieri. Clark's day of reckoning is set for June 24, where he could face up to 20 years in the slammer for conspiracy to commit honest services wire fraud, and another 10 for each count tied to commodities shenanigans.
Meanwhile, Webb, James, and Miller, the merry band of traders in cahoots with Clark, have already sung like canaries, pleading guilty to their parts in the conspiracy. Webb and James are tapping their feet until July 1, while Miller is eyeing a June 20 sentencing. Two other members of this high-stakes game, Marcus Schultz of Houston and Lee Tippett of Jacksonville caved earlier, with Tippett already getting his 33-month state-sponsored vacation.
The FBI led by Assistant Director Michael Nordwall of the Criminal Investigative Division, continues to investigate.
