3 Plead Guilty to Cheating Coastal
Three men pleaded guilty last week in Houston to one count each
of wire fraud charges related to the bilking of hundreds of
thousands of dollars from the Coastal Corp.
Seventeen other charges were dropped by federal prosecutors
against Robert Rossi, Kyler Lunman II and Steven Soule in exchange
for their guilty pleas to the wire fraud charge. The other charges
were for commodity fraud, money laundering and conspiracy and were
filed in the U.S. District Court for the Southern District of Texas
Original allegations were the three, along with an unindicted
coconspirator named Tommie DeMarco, cheated Coastal out of $700,000
between December 1993 and January 1995. DeMarco was planned to be
the government's star witness at a trial scheduled for this week.
The indictment said Soule began stealing trades from Coastal,
working with DeMarco, a former employee of Refined Energy. Also
involved in the ruse was a company called Hold Trade Inc., which
was controlled by Lunman. Punishment is expected to be set May 26.
Joe Fisher, Houston
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