Melissa man gets over 2 years for investment fraud scheme

PLANO, Texas (CBSDFW.COM) — A Melissa man was sentenced to over two years in federal prison for his involvement in an oil and gas investment fraud scheme.

Matthew Wayne Fox, 47, was sentenced to 33 months in prison in the Eastern District of Texas by U.S. District Judge Sean D. Jordan on June 3, 2022. Fox had pleaded guilty to a wire fraud charge on March 9, 2020. He was also ordered to pay $862,150 in restitution.

Court documents state that in 2015, Fox formed a company called Wayne Energy that claimed to specialize in the oil and gas exploration fields. Between March 2015 and October 2016, Fox raised about $949,650 from investors on a joint venture to convert an oil well to natural gas in Upshur County.

Fox solicited the investors through several means, including letters and emails.

The emails Fox sent contained many misrepresentations about the venture, including ownership of the well, the cost of converting the well, the production of a similar well, and actual on-site work. Fox also misrepresented that Wayne Energy was a licensed operator with the Texas Railroad Commission.

After receiving money from investors, Fox continued sending them emails that misrepresented the work being done on-site to convince them to invest more money into the venture. 

After several complaints from investors, the SEC launched an investigation into Fox. In 2018, they won a judgment against Fox for his conduct soliciting investors. The case was referred to the FBI, which launched a criminal investigation that lead to the indictment.

According to the SEC, the majority of the money stolen from investors was spent for the Fox family's personal use.