Former North Dakota Oil Executive Faces Fraud Charges
BISMARCK, N.D. (AP) — A onetime North Dakota oilfield executive is accused of breaking federal law by falsely inflating company revenues by tens of millions of dollars.
Joseph Kostelecky, of Dickinson, is charged with five counts of wire fraud and one count of securities fraud. Each count carries a maximum penalty of 20 years in prison.
Kostelecky pleaded not guilty at a hearing in Bismarck Friday. Trial is scheduled for March 7.
Prosecutors say Kostelecky served as the sole executive officer in the United States for Poseidon Concepts Corp., a fluid storage tank supplier based in Calgary, Alberta.
The indictment alleges that Kostelecky made false and misleading claims about financial matters in order to inflate the value the company and stock price.
Defense attorney Markus Powell could not be immediately reached for comment.
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