SAN JOSE – Joey Stanton Dodson, who previously served as an executive at Citadel Energy Partners, pleaded guilty today to defrauding investors of more than $15 million.  Dodson admitted the fraud was part of a Ponzi scheme involving limited partnerships created to provide services to oil and gas companies in North Dakota.  The plea was accepted by the Hon. Beth Labson Freeman, U.S. District Judge.

According to court documents, Dodson, 58, formerly of Indio, engaged in a scheme between November 2012 and May 2015 to defraud investors while serving as the executive chairman and managing partner of Citadel Energy Partners. In his role, Dodson had certain responsibilities for three limited partnerships, Fort Berthold Water Partners L.P., Citadel Watford City Disposal Partners L.P., and H20 Partners L.P., which included raising funds for the limited partnerships, controlling their bank accounts, and disseminating their financial information to investors. As part of the scheme, Dodson made materially false and misleading representations and omissions to prospective and existing investors regarding his receipt of compensation, the intended use of investor funds, and the status of a potential acquisition of the limited partnerships by a private-equity firm, among other things.

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