Oct 26
2011

Richard M. Plato of Baytown was indicted Oct. 26 in U.S. District Court in Houston on charges of mail and wire fraud and securities fraud.

Also charged were a business partner, Michael Derek Walker, and Tammy Renee Norris, described in the indictment as Plato's mistress.

Plato, through his company, Momentum Production Corp., allegedly raised more than $5 million from investors who were not told the company was $1 million in debt when it started issuing the notes.

According to the indictment, Plato diverted investors' money to pay personal expenses for himself and his family.

Plato also failed to tell investors of his previous criminal convictions, all on federal fraud-related charges, and the $30 million in restitution he owes as a result of those convictions.

The State Securities Board is working with the U.S. Postal Inspector's office and the Office of the U.S. Attorney for the Southern District, which is prosecuting the Momentum defendants.