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Former Arizona resident gets prison for fake oil well scheme

Posted at 1:41 PM, Sep 30, 2020
and last updated 2020-09-30 16:41:47-04

PHOENIX (AP) — A former Arizona resident has been sentenced to four years in federal prison for a fraudulent oil well scheme that cost investors nearly $2 million.

Kenneth Thomas White, formerly of Cave Creek, also has been ordered to pay more than $1.3 million in restitution.

Prosecutors say the sentence was the maximum allowed under the plea deal for White because of his age and medical issues.

The 80-year-old White pleaded guilty to transactional money laundering last September.

He was accused of defrauding 13 investors out of about $1.9 million by selling interests in fake oil drilling projects in Montana and Texas.

White was indicted in February 2019 on 60 counts of wire fraud, seven counts of mail fraud and 10 counts of transactional money laundering.