Midland Man Pleads Guilty in Investment Scheme Pitched With False 'Attorney Escrow' Promise

Published Nov. 3, 2026. Case statuses are current as of that date.

A promise that investor money will sit in an attorney's escrow account sounds reassuring, because it suggests a neutral professional is guarding the funds until the deal is done. According to the Texas State Securities Board, that promise was false in a Midland investment scheme, and the man who made it did not disclose civil judgments, federal tax liens and pending criminal indictments against him.

Bobby Lynn Teddlie of Midland, Texas, pleaded guilty to securities fraud and theft, the Texas State Securities Board announced on Oct. 27, 2026 [1]. The Board's announcement describes the result as a conviction. His prison sentence was suspended in favor of community supervision.

How the scheme worked

This section is based on the Texas State Securities Board's announcement [1].

1. The companies. The investment was promoted through two companies, KCET Consulting Advisors LLC and Dakota Petroleum Group LLC.
2. The safety pitch. While selling the investment, Teddlie misrepresented how safe it was by falsely stating that investor funds would remain in an attorney escrow account.
3. What he left out. He failed to disclose several material facts at the time he was soliciting investors, including:
   • prior civil judgments against him,
   • outstanding federal tax liens, and
   • pending criminal indictments against him.

The board's release does not say how many people invested, how much they put in, or exactly what the investment was supposed to fund. The Midland Reporter-Telegram reported that Teddlie was indicted in June 2026 on two felony counts, one for theft of property valued at more than $30,000 but less than $150,000 and one for securities fraud. Midland County District Attorney Glenn Harwood told the newspaper he was grateful for the partnership "to bring Teddlie to justice and full restitution to the victim of his fraud" [2]. We have not seen the indictment itself, so further details of the investment are unconfirmed here.

The plea and sentence

• Court: 238th Judicial District Court of Midland County, Texas, Cause No. DCR-26-00561.
• Plea: Guilty to securities fraud and theft.
• Sentence: 10 years in the Texas Department of Criminal Justice, suspended, with eight years of community supervision (probation).
• Restitution: As part of the plea agreement, Teddlie was ordered to pay $75,000 in upfront restitution [1].

A suspended sentence means Teddlie will not go to prison now, but a judge could impose the prison term if he violates the terms of his community supervision.

The Texas State Securities Board investigated the case. The Midland County District Attorney's Office prosecuted it, with board enforcement attorney Angela Cole appointed as a special prosecutor [1].

Texas Securities Commissioner Jeramy Heintz said: "Fraudulent investment schemes undermine confidence in our financial markets and harm hardworking Texans. This case demonstrates the importance of strong collaboration among state agencies to protect investors." [1]

No other person is named as a defendant in the board's release. KCET Consulting Advisors LLC and Dakota Petroleum Group LLC are named as the vehicles used to promote the investment; the release does not say whether either company was separately charged.

Why the "escrow" promise matters

An escrow account held by an attorney or title company is supposed to keep money separate until certain conditions are met. Scammers know that investors trust the word "escrow," so they use it to make a risky or fake deal sound protected. A real escrow arrangement comes with a written escrow agreement, an identifiable escrow agent you can contact independently, and clear conditions for releasing the money.

Red flags

These are general warning signs for private investments, especially in energy deals. They are not findings about any person named here.

• "Your money is safe in escrow" with no written escrow agreement or independent way to confirm it.
• The promoter's background doesn't check out. Judgments, tax liens and criminal cases are often public record. Search your county and federal court records before investing.
• Unregistered sellers or offerings. Check whether the seller and the offering are registered with your state securities regulator.
• Oil and gas deals sold by phone or through new LLCs with little track record.
• Guaranteed returns or "no risk" claims.

What to do if you're targeted

1. Check registration with the Texas State Securities Board (or your own state's regulator) and on FINRA's BrokerCheck.
2. Call the escrow agent yourself using contact information you find independently, not what the promoter gives you.
3. Search court records for the promoter and the companies.
4. Report suspected fraud to the Texas State Securities Board's Enforcement Division at enforceinfo@ssb.texas.gov or 512-305-8392 [1], or to the SEC at sec.gov/tcr.

Case status (as of Nov. 3, 2026)

Defendant	Court	Status as of Nov. 3, 2026	Source
Bobby Lynn Teddlie, Midland, Texas (KCET Consulting Advisors LLC; Dakota Petroleum Group LLC)	238th Judicial District Court, Midland County, Texas, Cause No. DCR-26-00561	Pleaded guilty to securities fraud and theft; sentenced to 10 years, suspended, with 8 years' community supervision; ordered to pay $75,000 upfront restitution (announced Oct. 27, 2026)	[1], [2]

Sources

1. Texas State Securities Board, "Bobby Lynn Teddlie of Midland, Texas Convicted of Securities Fraud and Theft," Oct. 27, 2026. https://www.ssb.texas.gov/news-publications/bobby-lynn-teddlie-midland-texas-convicted-securities-fraud-and-theft
2. Midland Reporter-Telegram, report on Teddlie's guilty plea, Oct. 27, 2026. https://www.mrt.com/news/crime/article/midland-securities-fraud-guilty-22497192.php

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