Dickinson man to pay $406.2 million and serve three years in prison for $886 million fraud scheme
DICKINSON, N.D. (KFYR) - A U.S. District Court judge has sentenced a Dickinson man for perpetuating an $886 million fraud scheme at a Canadian oil-services company.
Prosecutors say 61-year-old Joseph Kostelecky falsely reported around $100 million in revenue in his role as the U.S. executive of Poseidon Concepts Corporation between 2011 and 2012. They say he fraudulently directed the company’s accounting staff and caused $886 million in shareholder losses when inflated revenue came to light. Kostelecky pleaded guilty to the federal fraud charges in October 2021.
The government asked that he be sentenced to 20 years in prison and pay $430 million, in a brief saying that “the evidence of the devastating consequences of defendant’s fraud is overwhelming, and it warrants a substantial sentence.”
Monday, U.S. District Court Judge Daniel Traynor sentenced Kostelecky to three years in prison and ordered him to pay $406.2 million in restitution.
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