Oscar Black charged with felony mail fraud

May 20 arraignment scheduled after lengthy FBI investigation

Galen Scott

gscott@weatherforddemocrat.com

Former Weatherford mortgage broker and cattle baron Oscar Black is expected to plead guilty to a felony mail fraud charge in federal court May 20, Black’s attorney confirmed Friday.

A plea agreement signed by Black requires him to pay $3.6 million in restitution to 17 individuals, including $590,000 to First National Bank Weatherford, where he was serving on the board of directors.

Black is accused of stealing more than $3 million of the money from individuals to whom he promised a 12 percent annual rate of return in exchange for investments. Black was acquainted with many of his “investors” through the cattle and cutting horse business.

Initially, Black was able to meet his obligations with profits from OB Cattle Company, according to a factual resume signed by Black and filed with the U.S. District Court for the Northern District of Texas’ Dallas Division.

However, Black eventually started using investors’ money to cover expenses and provide capital for his struggling business ventures. He used some of the money as collateral against additional bank loans.

In an effort to convince people their investments were continuing to appreciate, Black mailed out fictitious monthly statements.

Floyd Copeland, 97, of Weatherford, was duped into believing his $88,000 initial investment had grown to more than $300,000. In reality, Black was using Copeland’s savings and other investors’ money to try and escape debt.

“All of Black’s false promises, representations and omissions were intended to deceive investors so that he could retain money from the investors, and so that he could continue to use their money to pay his business expenses,” Black’s factual resume states.

Felony mail fraud is punishable by a maximum of 20 years in a federal penitentiary. Even though a judge will ultimately decide Black’s sentence, prosecutors agreed to recommend “the low end” of the relevant sentencing guidelines, in exchange for Black’s cooperation.

Tim Evans, a prominent Fort Worth criminal defense attorney, claims he started representing Black shortly after Weatherford police executed search warrants at Black’s home and business in March 2007.

According to his law firm’s Web site, Evans has represented a number of high-profile clients, ranging from the National President of the Banditos Motorcycle Club, charged with conspiracy to commit murder, to the CEO of Mrs. Baird’s Bakery, who was indicted on criminal antitrust violations.

Under a heading marked “Plea Bargains,” Evans’ Web site states, “The prosecutor’s respect for the trial skills of the defense lawyer are an important factor in reaching a reasonable agreement.”

According to Evans, Black agreed to plead guilty a long time ago.

“A lot of times people don’t want to handle it that way; they don’t know what’s going to happen so they may want to go to trial and see how they do,” Evans said. “Oscar never wanted to do that.

“I’m not kidding you, he really feels very bad about this, and he knows he’s hurt a lot of people that he respects and likes, and that he believed respected and liked him. We’re trying to make the best of a bad situation.”

Black filed for bankruptcy more than 25 years ago in Forrest County, Miss., when he owned a different cattle company. A man who reportedly lost $400,000 in the ordeal was sentenced to 17 years in prison for conspiring to have Black killed.

Though the federal bankruptcy court with jurisdiction over the case confirmed Black’s bankruptcy petition was discharged in 1982, and subsequently closed, Black told a Mississippi newspaper none of his creditors got the amount of money they were owed.

After Black’s official arraignment takes place May 20 in Dallas, a sentencing hearing will be scheduled.

“I expect, given the way he’s conducted himself since all of this happened, and his close cooperation with law enforcement authorities, that they won’t feel like he’s got to be thrown in jail while he waits for sentencing,” Evans said.

Black’s lawyer declined to provide specific information about his client’s whereabouts or employment status.

“I will tell you that he is in the Metroplex and has been,” Evans said. “After he left Weatherford, he didn’t go very far.”

Evans points out Black didn’t file for bankruptcy this time around.

“I know from my conversations with him that he wants folks to know about this; about what’s going on,” Evans said. “I do believe — from stuff I’ve heard — that there are some folks who think he just walked away from all this just because they haven’t heard from him. That’s just absolutely not true.”

Evans said the government will be serious, but realistic about restitution.

“Restitution in a federal system is very similar to owing the IRS money — I mean, they don’t trifle with it,” he said.

Assistant U.S. Attorney Jay Weimer, the prosecutor handling Black’s case for the government, said the case will probably go forward May 20, and Black will have to be present for the arraignment. Weimer declined to discuss the case further.

Kathy Colvin, spokesperson for U.S. Attorney Richard Roper’s office, did not return phone calls from The Weatherford Democrat.