Joseph Seth Foster, a former licensed agent from Lubbock, was convicted for operating a fraudulent oil and gas scheme. On July 29th, he was sentenced to serve two 11-year prison terms in state prison for each charge of securities fraud and theft. The sentences will run concurrently.
The evidence showed four investors contributed almost $400,000 to purchase the oil and gas investments. An agency financial examiner summarized financial records showing their money was used for purposes other than exploring oil and gas wells – such as purchasing antiques and jewelry, and paying for a trip to Paris, France. The evidence presented at trial also showed Foster never acquired the rights to drill the lease.
The case was prosecuted by the Midland County District Attorney’s Office and the trial was held in the 441st Judicial District Court of Midland County, Texas. TSSB Enforcement Attorney Rachael Luna assisted in the prosecution. TSSB Financial Examiner William Mitchell testified as a summary witness and TSSB Enforcement Attorney Suzanne Steinmetz provided expert testimony.