HOUSTON – By: Meghan Mistry/ Staff
HOUSTON -- Two top energy company executives are facing serious felony charges. The former CEO and former president of Chase Power Development are charged with conspiracy to commit mail and wire fraud, mail fraud and wire fraud, according to U.S. Attorney Kenneth Magidson.
Recommended Videos
The FBI conducted an investigation of John Upchurch, of Spring, and Katheen Smith, of Austin, who served as CEO and President, respectively, from 2008 to 2012. During that time, they're accused of embezzling approximately $1,325,306.92.
Authorities say the two would submit false invoices for fake company projects to finance personal expenses- including travel and country club memberships, among other things. According to investigators, the two would sign off on their own person expense account summaries.
Upchurch appeared before a judge Monday and has since posted $20,000 bond, while Smith will make her first court appearance Tuesday.
If convicted, the two face up to 20 years in federal prison. Each conviction of mail or wire fraud also carries up to 20 years, and charges also carry a maximum $250,000 fine.
The Chase Power Development LLC is an oil and gas project created by Houston's Quintana Capital Group.