Feds Charge 7 In $132M Oil Drilling Rig Investment Scam

Law360, New York (September 12, 2012, 5:25 PM EDT) -- Kansas federal prosecutors charged seven men Wednesday with hatching a scheme to lure investors to their oil and natural gas drilling rig leasing businesses with fraudulent documents and false promises of outsized returns, ultimately raising $132 million.

The seven men, led by former Hutchinson, Kan., resident Michael J. McNaul, allegedly set up a company called Tri-State Production to buy and lease oil and natural gas drilling rigs and other equipment, and Mid Continent Manufacturing LLC to manage Tri-State, followed by a host of other ventures. The...
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