Man Pleads Guilty to Bilking Oil Firm Investors

One of three Ventura County brothers accused of bilking more than 100 investors out of about $2.3 million through the now-defunct Fountain Oil & Gas Co. has pleaded guilty to seven charges of securities fraud.

Kenneth R. Fuentes, 36, of Thousand Oaks admitted the charges Monday in Ventura County Superior Court, Deputy Dist. Atty. John Geb said. Fuentes faces a sentence of up to one year in jail, Geb said.

Fountain President Charles E. Fuentes, 47 of Thousand Oaks and Vice President James A. Fuentes, 42, of Westlake Village are scheduled to go on trial Feb. 24 on charges of grand theft, securities fraud and selling unregistered securities. If convicted, each could face up to 10 years in prison.

Charles and James Fuentes are accused of misappropriating money that investors gave them to finance gas-well drilling ventures in the Sacramento Valley. They are being held in Ventura County Jail on $500,000 bail each.

Kenneth Fuentes, who had a smaller role in the company, was released from jail Monday after posting $10,000 bail, which Judge Frederick A. Jones reduced from $100,000. Kenneth Fuentes is scheduled to be sentenced Jan. 24.

He originally faced 11 counts each of selling unregistered securities, securities fraud and grand theft, but Municipal Judge Thomas J. Hutchins reduced the charges last month, saying there was insufficient evidence to support all of them.