Amarilloan arrested in fraud case
JANELLE STECKLEIN
Authorities charged an Amarillo man Thursday with bilking investors out of a "substantial" amount of money.
Jack Russell Gilvin, 47, illegally sold interests in oil, gas or mining ventures to two Texas men in 2008, State Securities Board spokesman Robert Elder said. The two men bought shares in different "Wharton" projects and in projects either called "Joint Venture" or "Well Prospect," according to a criminal complaint.
Randall Sims, 47th District Attorney, said he believed Gilvin didn't own the property, but that he had sold shares to several people.
"Some of them were in Texas; some of them were elsewhere," he said.
Authorities declined to say how much money was involved.
Gilvin is charged with three counts each of dealing securities without registration and being a dealer or agent without registration.
Elder said state law required Gilvin to register all investments with the state and disclose his personal background to buyers. Gilvin did neither, authorities said.
Gilvin could not be reached for comment. He was being held Thursday in the Potter County jail on a probation violation charge and had not yet been arraigned on the security fraud charges, jail officials said.
A number listed for J.R. Gilvin Investments in Amarillo was disconnected. It appeared Thursday that the company's office on Lakeview Drive had been vacant for some time.
In September, the Texas State Securities Board issued a cease-and-desist order against J.R. Gilvin Investments for a different "Wharton" investment, located in Muskingum County, Ohio. Board officials said Gilvin used investors' money to purchase a 1996 Corvette and a 1969 Camaro.
The board also said Gilvin failed to disclose his criminal history. According to the order, he was placed on six years' probation in 2007 for aggravated assault against a public servant and for burglary of a habitation.
Officials said he failed to disclose that he is a managing member of Desert Fox, LLC, which manages Integrity Natural Resources, LP. Integrity filed for bankruptcy in Amarillo in December 2009, the order states.
No charges were filed Thursday in connection with the well operation named in the cease-and-desist order.