A former Texas energy executive will be spending the next six and a half years in prison after being convicted for his involvement in a multimillion-dollar illegal kickback and commodities insider trading scheme. Matthew Clark, the ex-president of a prominent energy company operating in the region, was handed down a sentence that also includes the order to pay upwards of $6.5 million in restitution and forfeiture for orchestrating trades that benefitted from illicit kickbacks.
Documents filed at a District Court revealed that Clark conspired with Matthew Webb, the owner of Classic Energy LLC, alongside other accomplices, to direct natural gas futures trades—a scheme that netted Clark over $5.5 million in prohibited gains. Webb, who also pleaded guilty to similar charges, is currently pending sentencing. As part of the findings, Clark has been ordered to pay $6,532,360 in restitution and will loose $5,543,662 through forfeiture. According to the Department of Justice, Clark's plea on charges including conspiracy to commit honest services wire fraud, prohibited commodities transactions, and commodities insider trading was made this past March.
The plot thickened with complicit parties extending beyond Clark and Webb. John Ed James and Peter Miller, both of whom took part in the scheme, have entered guilty pleas with sentencing dates set for July 1 and June 20, respectively. Similarly, two other individuals connected to the case, Marcus Schultz of Houston, and Lee Tippett of Jacksonville, Florida, had previously pleaded guilty to related charges; Schultz is awaiting sentencing, while Tippett began his two-year and nine-month sentence as of February 20.
This conspiracy has prompted intense investigation led by the FBI's Houston Field Office, with the prosecutions managed by a specialized team from the Criminal Division's Fraud Section and the Southern District of Texas. Nicole M. Argentieri, Principal Deputy Assistant Attorney General, alongside U.S. Attorney Alamdar S. Hamdani, heralded the investigation and subsequent legal ramifications for those involved. According to a statement obtained by the Justice Department, Argentieri emphasized the department's resolve to "prosecute corporate executives who choose to line their own pockets at the expense of their employers and the market."
