UPDATE II: Jeff Rand Receives 57-Month Sentence for Million-Dollar Oil, Gas Scam

by Gwen Moritz  on Monday, Aug. 27, 2012 8:44 am  

Jeffrey Scott "Jeff" Rand, shown in a 2003 booking photo taken by the Garland County Sheriff's Department, when he was arrested for aggravated assault.

Rand faced up to 20 years in prison; federal sentencing guidelines recommended 46 to 57 months. Rand's attorney, Morse U. Gist Jr. of Hot Springs, asked Dawson to sentence his client to probation, suggesting that Rand's continuing employment as a consultant was so lucrative that he might be able to pay the court-ordered restitution in fairly short order.

"I know the court doesn't see that often... but I think that even if the court were to order the full $8 million, that would be something he'd be able to pay in the next year or two," Gist told the judge.

But Rand won't be returning to the oil and gas industry anytime soon. Even during his three years of supervised release following prison, Rand was ordered not to engage in the sale of oil or gas leases without the express permission of federal probation authorities.

On Aug. 16, Gist filed a motion seeking to delay the sentencing hearing until the conclusion of his personal and corporate bankruptcy cases in Texas. There is, Gist wrote, "still remaining a certain amount of funds in possession of the U.S. Bankruptcy Court," and he argued that the restitution paid to victims through the bankruptcy procedure should be considered before sentencing.

Eldridge, U.S. Attorney for the Western District of Arkansas, objected to the delay, pointing out in his response that Rand's bankruptcy and that of his Wave Energy Corp. were involuntary. No victims will receive anything from Rand's personal bankruptcy, and any money coming out of Wave Energy's bankruptcy is "unlikely to compensate the victims in any substantial way, would not compensate any victims who did not make claims, and cannot in any way be characterized as a voluntary restitution by Jeff Rand."

Pre-Sentence Memorandum
A pre-sentence memorandum that Gist filed in federal court on Friday noted that Jeff Rand was born in Conway to Tony and Mary Ann Rand on July 6, 1963, and that he has four brothers. It does not, however, include the fact that Tony Rand and all four of those brothers are currently serving prison sentences -- one in a Texas state prison and the others in federal prisons -- for similar oil and gas scams.

Gist wrote that Rand had resisted voluntary bankruptcy because he "still had hopes of repaying his investors without going into bankruptcy." When the involuntary bankruptcy cases were brought in Texas, Gist wrote, he "completely cooperated" and more than $29.5 million has been distributed from the Wave Energy bankruptcy and more than $6.3 million from Rand's personal bankruptcy.



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