A Dallas tech entrepreneur who referred to himself as a “Frack Master” was sentenced to 15 years federal prison after admitting he scolded investors for millions for using the money to fund a lavish lifestyle of supercars and luxury travel.
Christopher A. Faulkner, 44, was convicted before U.S. District Judge Jane Boyle last month, the U.S. Attorney’s Office for the Northern District of Texas said Tuesday. In addition to the prison sentence, Faulkner was sentenced to $ 92.4 million in reparation.
Faulkner, the former CEO of Breitling Energy based in Dallas, advertised as an oil and gas expert with several high profile appearances on television and at energy conferences. But authorities said he had little experience and was using fake college degrees to beautify his qualifications.
Faulkner raised more than $ 71 million from investors using fraudulent marketing materials between 2011 and 2016, authorities said. In one case, Faulkner produced a geology report that was supposedly written by an independent expert but was actually commissioned by someone on Faulkner’s payroll who overestimated the production potential of oil wells.
“As soon [Breitling] began offering investments in oil and gas resources, Faulkner misrepresented his education, experience and background, ”government attorneys wrote in court documents. “He stated that he had extensive and varied experience ‘in all aspects of the oil and gas operation’, although he had no such experience.”
Faulkner admitted he oversold stocks and then diverted about $ 23 million for his own benefit, including trips, escorts, gentlemen’s clubs, and luxury cars including an Aston Martin, a Bentley, and a Mercedes-Benz. He also admitted hiding about $ 3.7 million in taxable income from the federal government in 2014.
In October 2018, he pleaded guilty to being charged with securities fraud, tax evasion and illegal money transactions – with up to 12 years in prison and a repayment of $ 24 million.
Boyle, the judge, denied this consent six months later, saying it was “just not good enough”. Faulkner made a second admission of guilt in December 2020.
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