FRAUD SCHEME

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…

Two sentenced in North Dakota construction fraud scheme

WASHBURN, N.D. – Two men accused in a construction fraud scheme in McLean County have each been sentenced to 15 months in prison and have paid more than $700,000 in restitution. Fifty-six-year-old Bartley Gorman Jr. and 27-year-old Sean Gorman, both of Minot, pleaded guilty to criminal charges, including exploitation of a vulnerable adult and construction fraud. An affidavit filed in…