Judge: Pair must forfeit $33 million in oil scheme

Published on NewsOK Modified: February 4, 2014 at 8:41 am •  Published: February 4, 2014
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LOUISVILLE, Ky. (AP) — Two men convicted in an oil-and-gas drilling scheme in which investors lost millions of dollars have been ordered to forfeit $33 million in cash, cars and property.

The decision by U.S. District Judge Karen K. Caldwell in Lexington brings to an end the long-running saga of 50-year-old former attorney Bryan Coffman and 60-year-old Tennessee businessman Gary Moss Milby, who were convicted in May 2011 of multiple charges of mail, wire and securities fraud.

Caldwell granted a request by Milby's wife to omit $290,000 from two bank accounts, a condo in South Carolina and an interest in eight properties from the forfeiture order.

Coffman is serving a 25-year sentence at the federal prison in Terre Haute, Ind. Milby is serving a 20-year sentence at the federal prison in Ashland.

Judge Caldwell found that Bryan Coffman and Milby either illegally took the money from clients of their businesses, or had used funds of their own to disguise the ill-gotten cash.

The funds were tucked away in a series of bank and investment accounts held by Coffman, his wife Megan, or various business entities the couple used. Caldwell found that money, either belonging to the clients or to the Coffmans, facilitated the money laundering part of the oil drilling scheme and should be forfeited.

"Bryan clearly exercised control over the accounts — so much so that, according to Megan, he was able to launder at least $1.5 million through them without her knowledge," Caldwell wrote.

The funds were tucked away in a series of bank and investment accounts held by Coffman, his wife Megan, or various business entities the couple used. Caldwell found that money, either belonging to the clients or to the Coffmans, facilitated the money laundering part of the oil drilling scheme and should be forfeited.

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