Texan Admits Running $7 Million Ponzi

TULSA (CN) - A Texan pleaded guilty to federal charges of running a $6.8 million Ponzi scheme.

Jimmy Morrisett, 53, of Burnett, pleaded guilty to money laundering, the U.S. Attorney's Office said. He faces up to 10 years in prison and a $250,000 fine.

Morrissett was CEO of Red Earth Resources, and Alpine Petroleum LLC, both of Tulsa. He fraudulently raised money through a boiler-room operation that solicited people throughout the United States and Canada.

Most of the money he got went to Ponzi payments, prosecutors said.

Morrisett was charged in December 2011 with for wire fraud, mail fraud and money laundering. His trial was to begin in two weeks.

"Today's plea of guilty is to only one of the money laundering charges, however, Morrisett admitted in court and through documents filed with the court, to the entire $6.8 million dollar fraudulent oil and gas investment scheme as well as illegally laundering the funds from the fraudulent scheme," prosecutors said in a statement. "Therefore, the court can hold Morrisett accountable for the entire $6.8 million loss suffered by the investors."

Morrisett will be sentenced on July 8.

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