Although the former officer has not yet been named, Dennis Desender, a former consultant with Bixby Energy, has alleged that the officer was running a $60 million securities fraud scam. Desender pled guilty to one count of securities fraud on September 14th. He is involved in a plea deal that will require his cooperation during investigation of the alleged Bixby Energy fraud.
In the plea agreement, it is alleged that Desender and the unnamed individual misled investors regarding Bixby Energy's coal-gassification technology. The technology was reportedly not ready for market, had significant defects, and was not functional. Desender and the officer apparently led investors to believe the technology was further along and ready for market. There are also allegations that the officer paid family members with investor's cash.
Much remains up in the air regarding the Bixby case, but authorities have said indictments could be expected. There is no word on whether the company will be hit with criminal charges. Rumors abound that former CEO, Bob Walker, may be the unnamed officer Desender refers to, but Walker has claimed those rumors are false. If he is named in the allegation, Walker has stated, "I absolutely would deny them."