48-year-old Sheridan resident Mark McGregor was sentenced Tuesday by U.S. District Court Judge Alan B. Johnson for his involvement in a scheme to defraud Marathon Oil Company. McGregor received 33 months of prison time to be followed by 3 years of supervised release and was ordered to pay $2,450,000 in restitution to Marathon Oil.
From November of 2006 through October of 2007, McGregor provided contract services for Marathon Oil. During that time, Marathon employee Brett Lattin devised a scheme to steer contracts to McGregor in exchange for a kickback; including contracts for the repair of leaking earthen reservoirs used to contain water from CBM production in Sheridan County.
Lattin used his portion to approve payments to McGregor totaling approximately $5,000,000, in exchange for McGregor's kicking back to Lattin approximately $600,000 of that amount. Of the $5,000,000, Lattin approved payments to McGregor in the amount of $2,450,000 for work not performed as required to repair the reservoirs leaking CBM water on to private lands in Sheridan County.
In June of this year, Judge Johnson sentenced Lattion to 41 months of prison to be followed by 3 years of supervised release, and ordered him to pay $2,450,000 in restitution to Marathon Oil Company.
The case was investigated by the FBI and the U.S. Postal Inspection Service.