Bobby Lynn Teddlie pleaded guilty to securities fraud and theft in the 238th Judicial District Court of Midland County, the Texas State Securities Board announced. The state agency said Teddlie was sentenced to 10 years in the Texas Department of Criminal Justice, but the sentence was suspended and he was placed on community supervision for eight years. As part of the plea agreement, he was ordered to pay $75,000 in upfront restitution.
The state agency said the case involved an investment promoted through KCET Consulting Advisors LLC and Dakota Petroleum Group LLC. It said Teddlie misrepresented the safety of the offering by falsely stating that investor funds would stay in an attorney escrow account. The board also said he did not disclose prior civil judgments, outstanding federal tax liens and pending criminal indictments when the investment was offered.
Teddlie was indicted on two felony counts in June 2026: theft of property of more than $30,000 but less than $150,000, and securities fraud. The Midland County District Attorney's Office prosecuted the case, with Texas State Securities Board enforcement attorney Angela Cole serving as special prosecutor. Texas Securities Commissioner Jeramy Heintz and Midland County District Attorney Glenn Harwood both praised the cooperation between the agencies.