William Allen and David Wolchansky were indicted March 1 in Collin County on first-degree felony charges of money laundering and misapplication of fiduciary property in connection with the sale of investments in a natural gas project in Mansfield.
Allen and Wolchansky, the owners of Plano-based Granite Resources, raised $1.2 million from approximately 53 investors in the single-well project in Mansfield, in Tarrant County.
The pair allegedly diverted most of the investor funds for uses other than the natural gas project.
Granite filed for bankruptcy in the Eastern District of Texas in 2013. Most of the unsecured creditors owed money were investors in the Mansfield well.
Allen served as an enforcement attorney for the Texas State Securities Board from 1996 to 1998 and worked as a compliance examiner for the National Association of Securities Dealers, which is now the Financial Industry Regulatory Authority. He was also a licensed registered representative for financial firms before he became the controlling partner of Granite Resources in 2009.