NewsChannel5.com | Nashville News, Weather & SportsOilman Owes Investors For Alleged Sham Deals

Oilman Owes Investors For Alleged Sham Deals

CAMPBELLSVILLE, KY. - NewsChannel 5 has uncovered new information about a Tennessee oilman accused of scamming hundreds of people out of $19 million.

Investigators said Gary Milby made million-dollar promises he could never keep.

Cases have been won against him in court, but NewsChannel 5 has learned dozens of his victims are still fighting to get their money back.

Milby threw his daughter a lavish birthday party that was documented on MTV's "Super Sweet 16" show. The show profiles extravagant birthday parties thrown by rich parents for their teenagers.

One episode featured Milby and his daughter, Ariel.

"My dad owns his own oil company, and he has oil wells all over the world," Ariel said during the segment.

During the episode, the pair goes on a shopping spree and tours Milby's oil wells.

"This hill right here makes more than 120 barrels a day," Milby tells his daughter.

"How many Louis Vuittons does that make?" she asks.

"A bunch," he said.

"He doesn't have an oil well that comes close to 120 barrels a day," said Nashville attorney Wynne James.

James represented close to 70 clients who claim Milby scammed them. Milby allegedly convinced them to invest in Mid-America Energy, his oil and gas company that has offices throughout Middle Tennessee. He wooed potential clients.

"Sometimes they are promised as much as 10 times their money in one year," James said. "Because they are told that the possibility of hitting oil is very great.

Dozens of Tennesseans bought the pitch. They are part of 375 investors across the country who invested $30,000 to $1 million.

James won his case against Milby last summer, but $4.5 million has yet to be returned.

"We are now trying to get paid for our clients and we are looking for assets because Mr. Milby hasn't sent us a check," James said.

The Federal Securities and Exchange Commission is suing Milby for running a scheme that raised more than $19 million from 375 investors nationwide.

Tennessee's Department of Commerce and Insurance has been investigating Milby for quite awhile. The agency has turned over its case to its sister agency, the Federal Securities and Exchange Commission.

Milby was not reached for comment.