Federal agents descended on four properties across Midlothian on Friday, including three homes and the S. 9th Street office of an oil and gas company already facing investor lawsuits alleging its operations were a sham. The FBI led the multi-agency search, and no arrests were made that day, authorities said.
The FBI confirmed to FOX 4 that it was the lead agency in the investigation and that the Midlothian Police Department assisted during Friday's raids. Sources told the station that the business searched on S. 9th Street is West Texas Crude Energy, LLC, though the company did not respond to FOX 4's request for comment. FOX 4 also reported spotting IRS investigators at one of the search locations.
Local outlet KBEC reported that the four addresses searched this week included West Texas Crude Energy's S. 9th Street office along with residential properties on Wisteria, Eagles Nest and Springer Road, according to the station's report. The exact reason for the searches, whether a warrant was used, and what investigators were seeking or may have seized have not been disclosed.
No Public Threat, Police Say
Midlothian police sought to reassure residents as the searches unfolded, saying, “At this time, there is no active threat to the public,” per FOX 4's reporting. The department's statement came as word of the raids spread through the small Ellis County city.
FOX 4's David Sentendrey has been covering the raids and the lawsuits swirling around the company. News reports cited by the station describe investors who have sued, alleging that the oil and gas operations were fraudulent. No charges or arrests tied to the federal investigation had been reported as of Friday.
A Pattern Seen Elsewhere in the Energy Sector
In the broader oil and gas industry, Reuters reported that Homeland Security Investigations executed a criminal search warrant at the Houston offices of fuel trader Ikon Midstream LLC on April 14, according to Investing.com's account of that reporting.
For now, the investigation into the Midlothian properties remains open, and officials have not detailed what prompted the coordinated searches. Federal and local law enforcement activity took place at the searched homes and the S. 9th Street office, but as of Friday, authorities said the situation posed no ongoing danger to the public.
