Wichita man among group indicted for swindling millions from investors
Federal prosecutors in Kansas have filed a 42-page indictment against a group, including a Wichita man, planning to swindle investors out of $132 million.
Dale Lucas, 62, is part of a 67 count indictment involving Mid-Continent Manufacturing, LLC and Tri-State Production. All seven defendants are charged in the first count of the indictment with conspiracy to commit mail fraud.
As the scheme grew, new companies were created, including Consolidated Leasing Joint Ventures, Consolidated Management, Alliance Leasing Joint Ventures, Garner Management LLC and others. The FBI investigated the case.
The indictment alleges that from 2004 to 2008, a team of seven men executed a scheme in which they distributed false and fraudulent brochures, joint venture agreements, application agreements, reports, updates, profit and loss statements and other documents designed to entice investors with false promises of high returns on investments in companies that leased drilling rigs and related businesses.
Michael McNaul, 58, formerly of Hutchinson, is charged in every count of the indictment. It also includes 20 counts of mail fraud, 38 counts of wire fraud, seven counts of money laundering and one count of bank fraud.
Others charged in the indictment are Russell Kilgariff , 63, of Preston, Kan., Lloyd Nunns, 68, of Hutchinson, Greggory Krause, 62, of Hutchinson, Steven Tallman, 58, Owasso, Okla. and Fredie Hembree, 57, of Hutchinson.