By Sarah Stogner
As you may have heard in the news recently, an oil executive was arrested in New York to face charges in my district. The Houston Chronicle broke the story, and numerous reports from other agencies followed. He was extradited and brought here, where he posted bail and is now awaiting trial.
There are good reasons this case got so much attention. Crimes in the oil sector are all too common — and all too frequently, they go unpunished.
As a D.A., I’ve seen why. White-collar crime can be very time-consuming and labor-intensive. Defendants are often able to hire teams of highly paid lawyers who search for loopholes to get the charges dropped. Especially for small offices like mine, taking on a case like this can be daunting.
Meanwhile, the oil and gas industry often pressures prosecutors not to go after these criminals. Their fear is that if these cases go to court, the sector’s “dirty laundry” will be exposed. The public will learn more about how it all works, and why people get away with crimes so often. They also don’t want shareholders to know how volatile these operations can be.
These cases are also complex. I’m in an unusual position, since I worked as an oil and gas lawyer for years before entering public service. I know the ins and outs of the business.
But even without experience like mine, other prosecutors’ offices should be taking on more of these cases. I’m happy to say that I see that happening.
We have a responsibility to protect the people we represent. Good, hard-working individuals are hurt by these nefarious actors. As I explained in a statement following the executive’s arrest: Don’t come to my jurisdiction and steal from my constituents.
What this case is about
The case is heading to trial, and I can’t divulge many details. Here’s what I can tell you.
Joshua Cohen was arrested in Nassau, New York. I traveled up to New York to get things all set in advance of his arrest. He has been charged with theft of services and engaging in organized criminal activity.
As the Chronicle reported, the investigation my office conducted involves at least $1.2 million in stolen services, and meets the first-degree felony threshold.
His alleged conduct was not limited to my district. Under the law, a D.A. can prosecute an entire crime if any part of it took place in that jurisdiction. We are cooperating with other districts, and the case continues to build. Other prosecutors in rural areas are working with my team. We’re combining resources to build up for this fight.
The scope of oilfield theft
This case is part of a big phenomenon. “Oilfield theft in Texas grows more organized — and more dangerous,” Texas Public Radio reported in May. Dallas Federal Reserve data shows that “more than 40% of oil and gas operators reported theft had affected their operations in the prior year.”
Financial losses are massive. Reports last year indicated that annual losses in Texas could be $1.5 billion based on oil prices at the time. Recently, oil prices have been even higher. And the higher those prices go, the more people are incentivized to carry out scams.
The risks aren’t just financial. Oilfield crimes can also put lives in peril. Last year, “danger lit up the night sky in Reeves County, when a pipeline caught fire and exploded after what investigators described as an attempted theft of petroleum products,” TPR reported.
The state government is providing resources to help offices like mine. The Border Prosecution Unit receives funding to combat crime in the “Texas border region,” which includes the 143rd Judicial District. State officials understand that in addition to human trafficking, drugs, and weapons, cartels are increasingly getting involved in oilfield theft as well.
My hope is that if the jury finds this defendant guilty, then this case will help the alleged victims. I also hope it will do even more: help set a precedent, scare off criminals, and send a strong message. Bad actors must learn that their actions won’t go unpunished — certainly not here in West Texas.