Patrick Lee Downing of Mesquite pleaded guilty to securities fraud and theft in Dallas County State District Court on Feb. 27 for defrauding investors in and oil and gas drilling venture. Downing was sentenced to 10 years probation and ordered to a total of $162,500 in restitution.
Downing sold working interests in an Oklahoma drilling program called the Stocker #1 Joint Venture project. Downing failed to tell investors that their funds would not be used for the drilling, testing, and completion of an oil and gas well.
Strike Development LLC, the Ada, Okla.-based operator of the joint venture, had notified the Oklahoma Corportation Commission in 2010 that it would not be drilling in the state. Downing did not disclose this to investors.