A former energy company president from Needville has been sentenced to a 78-month prison term for his involvement in a multi-million dollar illegal kickback and commodities insider trading scheme, according to federal authorities. Judge George C. Hanks of the U.S. District Court also ordered Matthew Clark, 56, to pay a hefty sum of $7,709,509 in restitution and to forfeit another $6,532,360; Clark had previously pled guilty to charges including honest services wire fraud and commodities insider trading on March 15.
The case involved Clark strategically funneling his employer’s trades through Classic Energy LLC, a Houston-based brokerage firm run by Matthew Webb, 54, of Tiki Island, in a corrupt exchange for illegal kickbacks, Clark received more than $5.5 million in illegal kickbacks because of directing these trades. Webb pleaded guilty in June 2021 to related charges of conspiracy to commit commodities fraud and wire fraud, and he is awaiting sentencing, along with John Ed James and Peter Miller, two co-conspirators in the case, Texas and Puerto Rico, respectively, both of whom have admitted to taking part in the illicit scheme.
Additional cases linked to this fraudulent activity have also seen legal action, with Marcus Schultz, 44, of Houston, and Lee Tippett, 64, of Jacksonville, Florida, pleading guilty to conspiracy to commit wire fraud and to violate provisions of the Commodity Exchange Act, Schultz is scheduled for sentencing on July 1, the same day as James, and Tippett has already received a 33-month prison sentence. The FBI spearheaded the investigation which laid the groundwork for the convictions and subsequent sentences, showcasing the agency's ongoing commitment to upholding federal laws and prosecuting financial crimes.
Despite the severity of his crimes, Clark has been granted permission to remain on bond until he voluntarily surrenders to a U.S. Bureau of Prisons facility at a date which will be later determined, the lengthy and complex investigation was stewarded by Assistant U.S. Attorney Grace Murphy, with assistance from Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division's Fraud Section, their efforts in prosecution have been pivotal in securing the sentence handed down to Clark, according to a justice department release.
