Kansas brothers plead guilty to oil, gas fraud


FILE – In this April 24, 2015, file photo, pumpjacks work in a field near Lovington, N.M. Oil industry and environmental groups say they expect the Environmental Protection Agency to release a proposed rule over the next few days that will roll back requirements on detecting and plugging methane leaks at oil and gas facilities (AP Photo/Charlie Riedel, File)

KANSAS CITY, Mo. (AP) — Two Kansas City-area brothers have pleaded guilty in a scheme to defraud oil and gas investors out of millions of dollars.

The Kansas City Star reports that 49-year-old Phil Hudnall, of Lenexa, Kansas, pleaded guilty Friday to one count of conspiracy to commit money laundering. Forty-three-year-old Brian Hudnall, of Kansas City, Missouri, pleaded guilty midweek to the same charge.

A third man accused in the scheme, Duc Nguyen, of Houston, Texas, pleaded not guilty this month to wire fraud.

Under their plea agreements, the Hudnalls must repay their victims and forfeit $3.8 million.

Sentencing dates have not been set.

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