LEXINGTON, Ky. — A former Lexington lawyer was sentenced Wednesday to serve 25 years in prison and pay millions of dollars in restitution for taking part in an oil- and gas-drilling scam that defrauded investors.
The Lexington Herald-Leader reports that 48-year-old Bryan S. Coffman maintained his innocence throughout a speech before U.S. District Judge Karen Caldwell, but acknowledged that he was tried by a jury of his peers and has to take responsibility.
A federal jury convicted Coffman and 59-year-old Campbellsville businessman Gary Milby in May 2011 on charges of mail, wire and securities fraud. Coffman was also convicted of money laundering and money laundering conspiracy. Milby is set for sentencing on Thursday.
The U.S. attorney's office said the case involved $36 million solicited from some 600 investors in the U.S. and Canada. In a statement, prosecutors said many victims wrote letters to the court describing the effects of losing their investments. Some said the loss led to divorces, major health problems such as strokes, foreclosures on their homes and inability to fund their children's college education.
The judge said Coffman used his skill and knowledge of the law to break the law, according to a statement from the prosecutor's office. She described Coffman's conduct as "predatory."
Defense attorney Steve Romines says he will appeal.
Defense attorney Steve Romines said he will file an appeal Thursday, seeking a new trial for Coffman.
"I expected her to give us a big sentence, but we'll keep fighting," Romines said.
Last month, Caldwell ordered Coffman to forfeit $3.1 million in cash, a yacht and a condo in South Carolina, saying Coffman either illegally took the money from clients of his business, American Oil & Gas Resources, or used funds of his own to disguise the ill-gotten cash.
Coffman asked to be held in a medical center-type prison because he has diabetes and arthritis. He was ordered to report to the federal medical correctional center in Lexington on May 16.
The jury acquitted Coffman's wife, Megan, of money laundering charges. Bryan Coffman was found not guilty of two money laundering counts. Prosecutors dismissed charges against alleged co-conspirator Vadim Tsatskin after he was sentenced to three years in prison in Canada.
Milby surfaced in the public eye when he threw his daughter a lavish Sweet 16 birthday party that was featured on MTV. The episode showed Milby giving his daughter a private helicopter ride, a new BMW and a shopping spree.