Nov 28
2018

A federal grand jury in San Antonio indicted Brian Keith Alfaro on Nov. 28 on eight counts of mail fraud for allegedly defrauding investors in Primera Energy LLC, the oil and gas exploration company he owned.

The indictment alleges that Alfaro misrepresented to investors that their money would be used to pay for costs associated with acquiring leases and testing and drilling costs, as well as a management fee. 

According to the indictment, Alfaro the funds into financial accounts he controlled and used the money to support an "extravagent lifestyle." The indictment includes a notice to seek the forfeiture of two homes owned by Alfaro, one in San Antonio and one in Port Aransas.

Primera filed for Chapter 11 bankruptcy in 2015. In 2017, Bankruptcy Judge Craig Gargotta awarded $8 million to nine of the 28 investors who had sued Alfaro.

The Texas State Securities Board and the FBI are jointly investigating Alfaro and assisting in the criminal prosecution.