Department of Financial Institutions
Traveling Evangelist Sentenced to 48 Months in Prison and Ordered to Pay Restitution for Defrauding Individuals in an Oil and Gas Scheme
The following press release was issued by the Office of the United States Attorney Western District of Kentucky. The Kentucky Department of Financial Institutions (DFI) shared information with federal authorities that led in part to the indictment and arrest of Ernest Cadick. DFI’s Securities Division previously took action against Ernest Cadick, and those orders can be reviewed at www.kfi.ky.gov/legalresources/enforcementactions/securitiesea.htm.
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Traveling Evangelist Sentenced to 48 Months in Prison and Ordered to Pay Restitution of Nearly $720,000 for Defrauding Individuals in an Oil and Gas Scheme
LOUISVILLE, KY – Ernest Cadick of Elizabethtown, Kentucky, was sentenced to 48 months in prison, ordered to pay restitution in the amount of $719,650, and fined $1,600 in United States District Court today, by Judge John G. Heyburn II announced David J. Hale, United States Attorney for the Western District of Kentucky.
Cadick, age 60, had previously pled guilty to a federal indictment charging him with 17 counts of wire fraud. According to court records, from 1994 through 2008 Cadick fraudulently solicited over $718,000 from 17 separate individuals. Court documents show that Cadick represented himself not only as the owner and operator of Kingdom Oil, but as a traveling evangelist and met potential investors at church functions or through contacts with churches.
“This fraud involved a particularly manipulative abuse of trust,” stated United States Attorney David J. Hale. “In these circumstances it is often difficult for victims to step forward, but by doing so, they can keep others from falling prey. Fortunately, the FBI, the Kentucky Department of Financial Institutions worked with prosecutors from my Office to put an end to this serious and destructive scheme of fraud.”
Cadick solicited the money under the pretenses of investing the money in, among other things, oil and gas ventures and overseas business ventures. Cadick, however, did not invest the money and expended it for his personal benefit and gain. Court records show that he received over $200,000 from one investor alone. While he told this investor that the money would be invested in oil and gas ventures, he expended the money for his personal benefit and gain and never repaid the investment.
Further, Cadick admitted during grand jury testimony in 2006 that there was never any drilling or exploration for oil by his company after 2001.
The case was prosecuted by Assistant United States Attorneys Bryan R. Calhoun and Joe Ansari, and it was investigated by the Federal Bureau of Investigation and the Kentucky Department of Financial Institutions.
Originally released Sept. 19, 2011
By Office of U.S. Attorney David J. Hale of the Western District of Kentucky
Contact: Stephanie Collins
9-19-11 Traveling Evangelist Sentenced to 48 Months in Prison and Ordered to Pay Restitution of Nearly $720,000 for Defrauding Individuals in an Oil and Gas Scheme [DOC 64KB]