North Dakota oil executive pleads guilty in fraud scheme
BISMARCK, N.D. (AP) – A former North Dakota oilfield executive has pleaded guilty to federal fraud charges for misleading shareholders about his company’s value, in a scheme that eventually forced it to go bankrupt and led to more than $886 million in losses.
Joseph Kostelecky, of Dickinson, pleaded guilty Wednesday to one count each of wire fraud and securities fraud. The 60-year-old Kostelecky faces up to 40 years in prison when he’s sentenced Jan. 10.
Kostelecky served as the highest ranking U.S. executive for Poseidon Concepts Corp., a fluid storage tank supplier based in Calgary, Alberta.
Prosecutors say he made false and misleading claims about the company’s finances in order to inflate its stock price.