William Logsdon, Lacrosse coach from Midland Texas, and mother-in-law, Jamie Thompson, oil and gas geologist, were recently convicted of financial crimes. For one count of conspiracy to commit wire fraud and four counts of aiding and abetting wire fraud, Logsdon was sentenced to nine years in prison.

Thompson pled guilty and was sentenced to five years in prison. CBS7 Report

The oil and gas financial investment business can be tricky. Maneuvering around Ponzi schemes and thieves, isn’t for the inexperienced investor. In the case of Logsdon and Thompson, they used relationships from Lacrosse to gather their victims.

Lacrosse originated as a way for Native tribes to resolve wars, settle arguments and territorial disputes. Logsdon twisted this ancient tool of diplomacy into attracting financial investors into his own oil and gas Ponzi scheme.

Investment Fraud

Twenty victims unwittingly enrolled in Logsdon and Thompson’s school of hard knocks. Victims invested $2.1 million in this fraudulent oil and gas investment. Investors thought their investments were purchasing royalty interests in various Texas and New Mexico oil, gas and mineral projects.

Royalty interests were allegedly purchased through multiple companies, including National Royalty Group (NRG). National Royalty Group is not even a shell corporation. It flat out does not exist. Justice Department Sentencing Press Release The fraudsters used other peoples’ money to pay personal expenses and to make Ponzi scheme payments.

Friends and Family Victims

Many of the victims met Logsdon and Thompson through a travelling youth lacrosse program. The Fort Worth Star Telegram (as reported by Yahoo News) discovered some of the victims. Parents of one lacrosse player invested $97,500. Two retired teachers invested a combined $40,000. And Logsdon even tricked one of his uncles into investing $22,500. Yahoo News

Lessons Learned

As for oil and gas fraud cases, this case is pretty straight-forward. Given the simple fact pattern, several lessons on how to avoid Ponzi schemes and investment fraud emerge.

Family and Friends

  • Financial investment thieves often know their victims. Family and friends are easy targets for financial investment scam artists. They have an audience that trusts them, and are willing to take full advantage of them. Don’t fall into the trust trap. Always perform due diligence.

Common Areas Of Interest

  • Many fraudsters use common areas of interest to develop relationships within groups for finding victims of their Ponzi scheme. Religion and church groups have been targets, along with groups of people in a country celebrating their immigrant history. Logsdon utilized sports and teacher contacts.

Research People and Companies

  • Many times, fraudulent investments and the sales agents are not appropriately registered with state securities or federal securities agencies. Go to your state’s website and the SEC to find out more about the corporation and its officers. Is the corporation in good standing? Do your research on all company names mentioned, especially the one to which you send money. Sometimes, as the case here with National Royalty Group, the companies are non-existent. Check for corporate registration or EIN with the IRS. This information is usually available on-line.

We hope all your real estate, cryptocurrency and oil and gas investments are safe and profitable. But if you find yourself searching for an experienced investment fraud attorney, oil and gas litigation lawyer or a commercial litigation attorney, we are here to help.

Lacrosse Coach

Mark A Alexander, P.C.,

Photo of Mark Alexander Mark Alexander

Mark Alexander is the principal of the Firm. In 1979, he earned his undergraduate degree at Wayne State University in Detroit, Michigan, and his law degree at Thomas M. Cooley, Lansing, Michigan, in 1985 (Academic Dean’s List).

Mr. Alexander is licensed…

Mark Alexander is the principal of the Firm. In 1979, he earned his undergraduate degree at Wayne State University in Detroit, Michigan, and his law degree at Thomas M. Cooley, Lansing, Michigan, in 1985 (Academic Dean’s List).

Mr. Alexander is licensed to practice law by the Supreme Courts of the States of Texas (1985) and Michigan (1988), and holds licenses before the following courts: Supreme Court of Texas; Supreme Court of Michigan; United States Court of Appeals for the Fifth and Sixth Circuits; United States District Courts for the Northern, Southern, and Western Districts of Texas; and the Eastern and Western Districts of Michigan. In addition he has been admitted in several other Federal and State Courts to represent Texas clients, who have been engaged in significant litigation in those jurisdictions.

Courts have appointed Mr. Alexander to serve as a receiver, and facilitator in complex litigation lawsuits. Additionally he has been a frequent lecturer for organizations on a variety of business law matters.  Mr. Alexander has also served as an Adjunct Professor of Business Law at Henry Ford College in Dearborn, Michigan. Significantly, Mr. Alexander is AV-rated by Martindale-Hubbell, the highest rating an attorney can receive.

Additionally, due to the complex nature of its practice, the Firm has an on-going relationship with a legal group that provides litigation support services. This group is comprised of a team of attorneys, whose combined capabilities allow the group to provide nearly 24-hour coverage at crucial times for any case. This arrangement is but one example of the innovative, cutting-edge approach that the Firm provides to its clients in order to improve representation at reduced legal fees.