A Tulsa U.S. District Court judge has granted the Illinois-based PETCO Petroleum Corporation the opportunity to expand its fraud lawsuit against Oklahoma operators after discovering other firms were allegedly involved in defrauding the company with phony work invoices.
Judge Gregory Frizzell issued his ruling a few days before Christmas in the original lawsuit filed by PETCO Petroleum, a firm with a regional office in Drumright, Oklahoma. The firm had sued David West, one of its former field supervisors accusing him of defrauding the company out of more than $129,000 by manipulating invoices to falsely show an independent trucking firm, U.S. Oil Reclaimers LLC had hauled oil.
PETCO says instead U.S. Oil had shipped water for disposal and West submitted 109 invoices by Flash Electric Services LLC for electric services. The lawsuit says PETCO discovered West was the owner of Flash Electric.
Then in the summer of 2020, PETO says it “uncovered a significant and long-running fraudulent scheme” on the part of other defendants including U.S. Oil and three other defendants.
PETCO sought the court’s approval to addition more claims of fraud, civil conspiracy, violation of the RICO or Racketeer Influenced and Corrupt Organizations Act. The move was opposed by the new defendants but Judge Frizzell ruled PETCO had demonstrated “good cause” in seeking modifications to its lawsuit.
He gave PETCO until Dec. 30 to filed its first amended complaint.
PETCO’s corporate headquarters are in Hinsdale, Illinois while regional offices are in Drumright where Northeastern Oklahoma operations are managed, and in Mississippi, Illinois and Texas.