Oilman seen on MTV show indicted on fraud charges

AP News
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Posted: Dec 03, 2009 5:14 PM

A Kentucky oilman featured on an MTV show about lavish teenage birthday parties has been indicted by a federal grand jury on charges of money laundering and securities fraud.

The indictment returned Wednesday says Gary Milby, of Campbellsville, Ky., exaggerated the profitability of his oil company's drilling and used investor money on salaries, vehicles and lavish personal spending.

Some of his investors have said they were angry to see him giving expensive gifts to his daughter on a 2007 episode of the television show "My Super Sweet 16."

A federal judge in Tennessee previously awarded investors more than $5.6 million in civil damages from Milby.

Milby's attorney declined comment on the indictment.