A League City man will spend five years in federal prison for his role in a $40 million securities fraud conspiracy involving a Houston energy company, federal officials said Monday.
A judge on Monday sentenced John David Brotherton, 60, of League City, to 60 months in federal prison while also forfeiting $1.9 million and serving three years of supervised release after the end of the sentence, said Angela Dodge, spokeswoman for the U.S. Attorney’s Office. Brotherton also will pay restitution to the victims, but that amount hasn’t been determined of yet.
Brotherton had originally pleaded guilty to one count of conspiracy to commit wire fraud in February 2019, officials said.
Brotherton, along with several other defendants, obtained control of the stock of several companies, increased the price of the stock through misleading press releases and trading techniques and then dumped their shares onto the market for a profit, Dodge said.
Brotherton helped draft and issue the press releases and designed and managed advertisements and websites during the scheme, according to the plea agreement documents.
The companies included a defunct Houston company called Chimera Energy.
A total of seven people have been convicted in connection with the scheme, Dodge said.