Father, 3 Sons Plead Guilty In Massive Texas Fraud And Ponzi Swindle; Members Of The Tony Rand Family Potentially Face Decades In Prison

Five people — including a father, three sons and a pitchman who doubled as an executive — have pleaded guilty to their roles in orchestrating a $68 million securities-fraud and Ponzi scheme involving fraudulent Texas oil-and-gas investments, federal prosecutors said.

The father — William Anthony “Tony” Rand, 69, of Plano — is a recidivist felon who previously had spent nearly seven years in prison for money-laundering, bank fraud and other crimes, prosecutors said.

Tony Rand was the financial manager and bookkeeper for Aspen Exploration Inc., which prosecutors described as corrupt from top to bottom. Sons Gregory Keith “Greg” Rand, William Nicholas “Bill” Rand and Mark Albert “Mark” Rand were Aspen’s owners and principals.

Greg Rand, 46, pleaded guilty last week to conspiracy to commit mail fraud and securities fraud and three counts of securities fraud. Under a plea agreement, he faces up to 216 months in prison.

Bill Rand, 41, pleaded guilty to three counts of securities fraud. His plea agreement exposes him to up to 168 months in prison.

Mark Rand, 45, pleaded guilty in October 2010. Details about his plea were not available immediately.

Tony Rand, meanwhile, faces up to 78 months in prison after pleading guilty last week to conspiracy to commit mail fraud and securities fraud and one count of securities fraud.

A fifth Aspen employee — Joel William Petersen, 54, of Frisco — also faces up to 78 months in prison after pleading guilty last week to conspiracy to commit mail fraud and securities fraud and one count of securities fraud. Peterson was an Aspen vice president and pitchman.

The Rands “will be required to forfeit substantial money judgments and property to the government, including real estate, boats and other personal water craft, luxury vehicles, artwork, including an original Picasso, furniture, antiques, musical instruments, jade, expensive jewelry and wine,” prosecutors said.

Despite the fact Aspen was insolvent, investors were told “they could receive profits equal to the return of their cash investment within three years with potential production revenues lasting up to 20 years and multi-fold returns on their investment funds,” prosecutors said.

The case was brought by elements of the Financial Fraud Enforcement Task Force.