A Louisville man convicted of securities fraud as part of an oil and gas drilling scam has been ordered to pay a north-central Kansas resident $45,000 for full restitution, according to the Kansas Securities Commission.
Mitchell County District Court Chief Judge Kim Cudney sentenced Byron Hogan on Oct. 6. to 24 months of probation and ordered him to pay a Glen Elder resident the restitution.
Hogan was convicted of two counts of securities fraud on Aug. 17 as part of a plea agreement.
Hogan made an unsolicited phone call to the Glen Elder resident asking him to invest in Hogan's oil and gas company, Barren Resources Group of Jefferson, Ind. Money provided by the investor was for drilling six oil and gas wells in Overton County, Tenn.
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In addition, Hogan promised the investor that he would come to Kansas and drill wells on the investor's farm in rural Mitchell County.
An investigation by the securities commission determined Hogan never purchased the leases or drilled any wells. Investor funds were used primarily for Hogan's personal use and to pay existing company debt.
As part of the plea agreement, Hogan and Barren Resources are also barred from selling securities in Kansas.