MIDLAND, Texas — 41-year-old Marco "Sully" Perez Jr. has been indicted by a federal grand jury in Midland for his role in a Frac Sand Ponzi scheme.
According to the indictment, Perez provided victims a chance to invest in his company, Permian Basin Proppants, Inc., that is based in Midland and sells Proppants like sand for fracking operations. Between 2017 and 2022, Perez took in over $11 million through his scheme.
Perez allegedly made false and misleading promises to his victims by saying that their investments would be used to help fund the purchases of frac san at a discount and then eventually resold at a profit. Instead, Perez used these funds for his own personal gain, and bought expensive properties, vacations and vehicles.
Perez never really used the money that was given to him and instead, he is being accused of using the money that investors gave for his personal reasons and to make sure the scheme continued to run smoothly. He also would use the money to make payments to prior PBP investors.
Perez has been officially charged with 12 counts of Wire Fraud and six counts of Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity. If convicted, Perez can face up to 20 years in prison for each wire fraud count and 10 years for each money laundering count.
Perez is scheduled for a detention hearing next week in front of the U.S. District Court for the Western District of Texas.
