Jefferson K. Villines III, 49, a former resident of Kendall County and operator of JKV Management Consulting LLC, was sentenced on February 6, 2025, to 20 years in prison for orchestrating a fraudulent securities scheme that defrauded multiple investors out of more than $154,000. In addition to his prison sentence, Villines was ordered to pay $231,931.53 in restitution to the victims.
Villines was convicted for violating the Texas Securities Act through the fraudulent offer and sale of working interests in oil and gas wells. The sentencing follows an extensive investigation by the Enforcement Division of the Texas State Securities Board (TSSB), which uncovered the deceptive sale of securities in oil and gas ventures that Villines misrepresented to investors.
Villines’ scheme began in early 2017 when he falsely portrayed himself as an experienced oil and gas investor and promoter. Through JKV Management Consulting LLC, he solicited investments from individuals across the United States via unsolicited phone calls and internet advertisements. He pitched investments in two ventures: the Latham #1 Joint Venture and the Bend Arch Project.
In the Latham #1 Joint Venture, Villines claimed that investor funds would be used to rework an existing well, promising quick returns. He stated that Tower Resources Inc. would conduct the rework, but the company later denied any involvement. No rework was ever conducted, and the funds were not used as promised.
For the Bend Arch Project, Villines solicited investments for drilling horizontal sections of nine wellbores in Throckmorton County, Texas. He assured investors, including elderly individuals, that they would receive monthly returns. However, investigators determined that the wells were either non-operational or abandoned and that the project lacked viable funding.
Villines defrauded at least seven investors, including two Kendall County residents. One victim, an 83-year-old man, invested his settlement funds in the Bend Arch Project but passed away before realizing any returns. Authorities revealed that Villines diverted investor funds for personal expenses, including mortgage and automobile payments, rather than the promised oil and gas operations.
Investigators also found that Villines had a history of securities violations in other states. He had been subject to Cease-and-Desist Orders in Pennsylvania (2012) and Georgia (2013) for offering unregistered securities but continued fraudulent activities in Texas.
The Texas State Securities Board, in cooperation with local authorities and the Kendall County Criminal District Attorney’s Office, built the case against Villines. Special Prosecutor Angela Cole, Enforcement Attorney Judith “Judy” Saenz, and Kendall County Assistant Criminal District Attorney Alessandra Deike prosecuted the case on behalf of the State of Texas.
“This conviction sends a strong message that individuals who engage in securities fraud will be held accountable,” stated a spokesperson for the Kendall County District Attorney’s Office. “Villines took advantage of trusting individuals, including elderly victims, and used their hard-earned money for personal gain. His sentence reflects the seriousness of his crimes and provides justice for those affected.”
