Oil and gas company executive sentenced in Butler County

Catherine M. Schaper was sentenced for securities fraud and the sale of unregistered securities.

The last of three defendants in a securities fraud case was sentenced this week.

Butler County Court of Common Pleas Judge Charles Pater on Tuesday sentenced Catherine M. Schaper, 55, of Austin, Texas-based North Shore Energy, LLC, to six years in prison and ordered her to pay restitution to the victims and court costs.

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The sentencing followed a criminal referral by the Ohio Division of Securities after the sale of promissory notes issued by North Shore Energy, LLC, to at least 18 investors residing in Ohio, Indiana and Kentucky in 2010 and 2011 for the purpose of investing in oil and gas drilling operations in Texas.

Schaper pleaded guilty to one count of securities fraud and one count of the sale of unregistered securities, both felonies of the second degree. She was the last of the three defendants to be sentenced in this case.

Company principle Troy West was sentenced last June to six years in prison, ordered to pay restitution to investors and ordered to pay the costs of prosecution.

Company solicitor Robert “Bob” McManus, of Dimmick Road in West Chester Twp., was sentenced to five years in prison and ordered to pay restitution to investors.

North Shore Energy, LLC, was ordered to pay additional fines of $30,000. All of the defendants are jointly and severally liable to pay the full restitution amount to the investors in the amount of $1,942,239.79.

West and North Shore Energy pleaded guilty to one count of securities fraud and one count of the sale of unregistered securities, both felonies of the second degree.

McManus pleaded guilty to one count of the sale of securities without a license and one count of the sale of unregistered securities, both felonies of the second degree.

West, who appealed his conviction and sentence last July, remains in custody while his appellate case is pending.

The cases were prosecuted by Assistant Butler County Prosecutor Dan Ferguson.

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