Chad Michael Hays was sentenced to 25 years in state prison on April 25 after being convicted on one count of securities fraud, eight counts of the sale of unregistered securities, and eight counts of sale of securities by an unregistered dealer or agent.
Hays was convicted in the 196th District Court of Hunt County for his sale of interests in oil and gas joint ventures offered by Mack Diamond Energy LLC, a company in Wolfe City.
Hays was one of five North Texas men indicted for their role in Mack Diamond Energy, which raised $2.6 million from about 40 investors.
Hays was part of a scheme to lie to investors about Mack Diamond's earlier failed drilling projects.
Hays failed to tell investors that money raised for a previous drilling project was diverted to other uses.