A Hill County man has been sentenced to 20 years in prison for running a fraudulent oil drilling investment scheme that scammed investors out of $154,000. Jefferson K. Villines III, 49, was found guilty of multiple financial crimes, including fraudulent securities conduct, money laundering, and theft. The scam, which started in 2017, promised quick and profitable returns on oil and gas projects that never actually existed.
How the Oil Scam Operated
According to the Kendall County District Attorney’s Office, Villines convinced seven investors to put their money into two fraudulent oil and gas ventures:
- Latham #1 Joint Venture
- Bend Arch Project
Villines claimed these projects would generate fast and high returns, but investigations revealed they were completely fabricated. He made unsolicited phone calls to potential investors, using false and exaggerated claims to gain their trust.
False Promises and Fake Investments
- Latham #1 Joint Venture: Villines told investors that Tower Resources Inc., a Houston-based company, was involved in reworking an oil well. However, the company later denied any involvement in the project. The project was never funded.
- Bend Arch Project: Villines claimed the project involved drilling oil and gas wells in Throckmorton County. In reality, the wells were abandoned or non-operational, and no drilling took place.
How Villines Used the Stolen Money
Instead of investing in the oil and gas industry, Villines used the investors’ money for his personal expenses, including:
Mortgage payments
Car payments
Consumer goods
Bank records showed that most of the funds were funneled into accounts controlled by Villines instead of being used for the promised projects.
Victims of the Fraud
Two of Villines’ victims were Kendall County residents who lost their entire life savings in the scam. In total, he defrauded seven investors out of $154,000. As part of his sentencing, Villines has been ordered to pay $232,000 in restitution to the victims.
Villines’ History of Fraud
This is not the first time Villines has been involved in fraudulent activities. The Texas State Securities Board found that he had received cease-and-desist orders in:
- Pennsylvania (2012) for offering unregistered securities
- Georgia (2013) for similar financial misconduct
Despite these warnings, Villines continued to operate under JKV Management Consulting LLC, a company registered in Boerne, Texas. His LinkedIn profile falsely claimed he had been the President and CEO of the company since 2006.
Justice for the Victims
Authorities condemned Villines for taking advantage of trusting individuals, including elderly victims, and using their hard-earned money for personal gain. The 20-year sentence highlights the seriousness of his crimes and serves as a warning to others engaging in financial fraud.
Investment fraud cases like this show how scammers exploit trust and financial desperation to steal money from innocent people. Investors should always verify the legitimacy of opportunities before investing. Authorities continue to crack down on such schemes to protect people from falling victim to financial fraud. Villines’ case serves as a strong reminder that dishonest financial crimes come with serious consequences.
