Man admits guilt in case of phantom natural gas sales to Kentucky city, large utility
A man has pleaded guilty in a scheme to charge natural gas customers for more gas than his company actually delivered.
Marshall E. Holbrook, who lived near Barbourville at the time of the conspiracy, pleaded guilty Monday to one charge of conspiring to illegally convert gas from an interstate pipeline system between January 2015 and March 2019.
The crime is punishable by up to five years in prison.
U.S. Magistrate Judge Edward B. Atkins recommended that U.S. District Judge Claria Horn Boom accept the plea.
Holbrook’s father, Mark Edward Holbrook, was allegedly involved with his son in the conspiracy, according to court records.
The father and son were owners in a company called Puissant Industries, which leased, brokered and sold natural gas.
The charge against Mark Holbrook says Marshall Holbrook came up with a way to manipulate meters to show their company was sending more gas to customers than it really was, meaning the company got paid for gas it didn’t deliver.
The city of Somerset bought gas from Puissant to provide to residential and industrial customers.
Mayor Alan Keck said the scheme likely cost the city millions of dollars. The city’s gas-system manager noticed the problem and told Keck about it not long after he took office in early 2019, Keck said.
The city dropped Puissant as a supplier and reported the problem to authorities.
Delta Natural Gas was another customer of the Holbrooks’ company.
The charge against Marshall Holbrook said he rigged a Delta meter to show a higher amount of gas flow than the true amount.
The indictment against Mark Holbrook cited alleged illegal activity by Marshall Holbrook, but did not charge the son. He was charged through a separate document.
Marshall Holbrook is scheduled to be sentenced in March. Mark Holbrook has yet not had his initial court appearance.
