Oilman who threw party for daughter heads to trial - wave3.com-Louisville News, Weather & Sports

Oilman who threw party for daughter heads to trial

LOUISVILLE, KY (AP) - Four years after throwing his daughter a lavish Sweet 16 celebration, Kentucky oilman Gary Milby is still paying for that party.

Milby goes on trial Tuesday in Lexington on federal charges he defrauded more than 375 investors of almost $20 million while he and his associates bought yachts and real estate.

A 34-count indictment against Milby says that Milby claimed there was no risk for investors and that he had an extensive record of success in oil and gas production. Prosecutors say he actually had a spotty history of success and every investor lost money.

His trial is expected to last four weeks. He faces 20 years in prison on 20 of the charges against him and maximum fine of more than $5 million.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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