‘Razzle-Dazzle’ Oil Promoter Admits Role in $1-Million Scam

A Malibu man pleaded guilty Friday to two counts of mail fraud and three counts of wire fraud in an oil well investment scheme that federal authorities say defrauded more than two dozen investors out of nearly $1 million.

Brian Joseph Cullen, 40, admitted soliciting money from investors, some of whom gave up their life savings, by promising them interests in oil wells that never produced.

“The intent was not to rip people off, but it happened that way,” Cullen told U.S. District Judge Edward Rafeedie. “It started off to be legitimate, and it got out of control.

“It was razzle-dazzle, your honor. Enthusiasm, hype, basically falsification, misrepresentation.”

“Basically, you’d say anything to persuade the investors to invest?” Rafeedie inquired.

“That is correct,” Cullen replied.

Cullen faces a maximum of 25 years in prison and a $1.25-million fine, but he has agreed to turn over an estimated $220,000 in property and pay a $106,000 fine, all of which will go toward paying off investors who lost their money, Assistant U.S. Atty. David Katz said.

“What we plan to do is make all the victims whole, 100%, and if there’s money left over, it will go to the government,” Katz said.

Katz said he estimated the government will be able to reimburse at least the 16 victims who were named in the indictment against Cullen, victims who lost a total of $495,000.

Among the property seized after Cullen’s arrest were a 1984 Ferrari worth $30,000, three Porsches valued at a total of $72,000 and a $22,000 Corvette.

Government officials said they had evidence that the Ferrari was purchased on the same day that a Louisiana widow wired Cullen $68,000 of her savings.