Sean Brian Higgins, 44, of Livermore, admitted that he had commingled the assets of limited partnerships and paid himself large sums in addition to his salary.
Higgins made numerous transfers of money from HT Oil accounts to his personal bank accounts, which exceeded his contributions to the business and the amounts that he reported on his income tax returns as income from HT Oil, according to court documents.
He admitted that he paid himself $399,070 in addition to his salary from 2002 through 2005, which resulted in an additional tax of $133,726.
Higgins used the money for his personal use, including funding the startup of a new, unrelated business called Fantasy Garage. Higgins used Fantasy Garage to acquire exotic cars and motorcycles, which he made available for rent to third parties.
In his plea agreement, Higgins agreed to pay a civil fraud penalty in the amount of $100,294.50.
HT Oil does exploration and production of crude oil and natural gas. The company's principal offices were located in Dublin and later moved to Pleasanton, although its production operations are located primarily in the state of Kansas.