Apr 6
2011

Richard M. Plato was indicted on April 6 by a U.S. District Court grand jury in Houston on seven counts of mail fraud and two counts of securities fraud.

Plato, the owner of Momentum Production Corp. of Baytown, allegedly took in more than $5 million from investors in promissory notes that were supposedly backed by oil and gas interests.

According to the indictment, Plato transferred investors' money to his personal accounts to benefit himself and others.

Plato failed to tell investors about his prior criminal convictions, the restitution he owed from those convictions, and his disbarment from practicing law.