Christopher A. Faulkner, the man known as the “Frack Master,” is headed to prison after he pleaded guilty to numerous charges including fraud, tax evasion, and illegal monetary actions.
The news was announced by Erin Nealy Cox, the U.S. attorney for the Northern District of Texas. Faulkner, 41, is a former tech entrepreneur who turned his sites toward the oil and gas industry. Over the past ten years, he’s been a vocal proponent of fracking, and was featured in the media as an expert in the oil and gas industry.
Over a five-year span, he raised more than $71 million from investors. Court documents were unsealed to reveal Mr. Faulkner’s illegal activities:
In marketing materials, he inflated drilling cost estimates by as much as 800% and kept the difference.He used a geologist that was on his payroll to prepare geology reports that overstated wells’ potential.These reports were given to prospective investors.He diverted approximately $23 million that was used for multiple residences, concierge services, cars and travel.In 2014, he concealed more than $4 million in taxable income from the IRS, and did not file a tax return or pay taxes.
Faulkner was arrested in Los Angeles earlier this year, and is in custody in Seagoville. He faces 12 years in prison, $350,000 in fines, and will be required to pay restitution to the people he defrauded.
The Harris Firm has significant experience in pursuing investment fraud cases for multiple clients during the course of our firm’s history. If you suspect you may have been defrauded, please feel free to contact our firm for a free consultation.
