Indictments still pending in fake power plant case [The Herald Banner, Greenville, Texas]

Dec. 28--GREENVILLE -- Five defendants still have cases pending in connection with a reported scheme to sell shares in a non-existent power plant project in Hunt County.

One man was sentenced to state prison earlier this year after pleading guilty to a felony theft charge filed in connection with the case.

All six individuals were indicted by a Collin County grand jury.

Ronnie Gene Nichols Jr., pleaded guilty in the 380th District Court in March to one count of theft of property of the value of $100,000 but less than $200,000 by aggregate amount. Under a plea bargain arrangement Nichols, who was already incarcerated in state prison an on unrelated charge, was sentenced to eight years in the Texas Department of Criminal Justice-Institutional Division. The Texas Department of Insurance in 2009 denied Nichols' application for a license to sell insurance, saying he "engaged in fraudulent or dishonest acts or practices."

Robert Elder with the Texas State Securities Board said indictments remain pending against Ricky Ray Knowles, John David Riddle,Casey Ray Vanloon, Gene Michael McKinney and Kenneth Paul Lawrence.

Knowles, Riddle, Vanloon and McKinney are each facing 14 counts of theft , one count of money laundering and one count of engaging in organized criminal activity.

Lawrence is facing 21 counts of securities fraud, one count of engaging in organized criminal activity and one count of money laundering.

The defendants were alleged to have been involved with the Greenway Bio-Plant Joint Venture in Hunt County, which allegedly bilked 19 people out of almost $800,000 between September 2008 and September 2009.

According to a report from the Securities Board, Lawrence misrepresented that his company, Greenway Energy Partners, L.L.C., and/or the Greenway Bio-Plant Joint Venture had entered into an agreement with Sunx Energy, Inc., to build a biodiesel plant in Hunt County.

Lawrence also allegedly told investors they would receive annual returns on their investments of 33 percent for a period of five years, but failed to disclose that previous investors' funds were used to pay his personal expenses. He also failed to disclose that previous investors' funds were used to pay for the expenses of projects other than the Greenway Bio-Plant Joint Venture, including oil and gas projects and other alternative fuel projects.

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