Brent Mueller, of Edmond, had pled guilty to failing to report the illegal taking of $1 million from Oklahoma City’s Quest Resources Corporation.

Brent Mueller, of Edmond, had pled guilty to failing to report the illegal taking of $1 million from Oklahoma City’s Quest Resources Corporation.Mueller is the former purchasing director for Quest. In court, Mueller admitted that in the summer of 2008, he learned that a now former senior Quest executive had illegally wired $1 million out of Quest to use for personal investment in Oklahoma Hydrogen Gas Technologies.Upon learning of that illegal conduct Mueller admitted he took several steps to cover up that crime, including lying to Oklahoma Hydrogen about the source of the investment and trying to recover the $1 million to prevent Quest from learning about it, court officials said.Mueller also finds himself a defendant in a lawsuit filed by Quest earlier this month in Oklahoma County District Court. The suit also names David E. Grose, of Edmond, among others. It sought an asset freeze and damages related to the kickbacks and the misappropriation.Grose, Quest’s former chief financial officer, also is a defendant in a lawsuit filed last month in Oklahoma County District Court by the Oklahoma Department of Securities. The lawsuit alleges that Grose directly participated and/or materially aided Jerry Cash, the company’s former chief executive offer, in connection with the unauthorized transfer of $10 million to an entity controlled by Cash. The lawsuit alleges that Grose and Mueller received kickbacks from several related suppliers during a two-year period. The lawsuit also alleges that in the third quarter of 2008, Grose and Mueller engaged in the direct theft of $1 million for their personal use.
Bill Price, Mueller’s attorney, said he does not comment on pending litigation.James McMillin, Grose’s attorney, also declined comment for the same reason. In court, Grose stated that because there was an ongoing investigation, he invoked his Fifth Amendment privilege against self incrimination.Mueller will be sentenced in about 90 days. He faces up to three years in prison and, as part of the plea agreement, he must pay restitution to the victims of his crime.
Dan Webber, Cash’s attorney, said his client asserts that he is innocent until proven guilty. Webber said Cash is working with the Oklahoma Securities Commission to clarify the underlying facts.Webber said Cash is not connected to the kickback scheme associated with Grose and Mueller.According to court papers, Grose has 25 years of financial experience, primarily in the exploration, production and drilling sectors of the gas and oil industry, and his positions with Quest and Quest Energy included CFO and principal accounting officer.Grose and Mueller entered a conspiracy with defendant Rodger H. Brooks in which they would place orders for Quest to buy pipe from Brooks’ companies — Reliable Pipe and Equipment, Mid Continent Pipe and Equipment, RHB Global and RHB, the Quest lawsuit alleges. Grose and Mueller would mark up the price of the pipe and they would split the amount.Grose received about $850,000 in kickbacks and Mueller about $860,000, Quest alleges. Grose and Mueller used the kickbacks and funds they wrongfully converted and fraudulently obtained for their personal use and to support an extravagant lifestyle, including the purchase of homes, boats and cars, Quest alleges. Attempts to identify Brooks’ attorney by press time were not successful. Beginning in at least 2005, Cash caused Quest money to be transferred to a bank account in the name of Rockport Energy, the Oklahoma Securities Commission lawsuit alleges. Grose allegedly assisted Cash with the transfers into the Rockport account by authorizing and/or effecting the wire transfers. By July 2008, transfers to the account from Quest totaled $10 million.Cash had sole signatory authority over the Rockport account, and he allegedly spent the Quest money from the account for personal expenses and/or other business activities not related to Quest.To create the illusion that the money transferred to Rockport Energy was returned to Quest, Cash directed a series of suspicious financial transactions between the two companies, the lawsuit alleges.Specifically, on or within a day of the end of each Quest fiscal quarter, Cash allegedly issued a check drawn on the Rockport account, made payable to a Quest entity. The check would then be deposited into the bank account of the payee.
At all times, the balance on the Rockport account at the time each check was issued contained insufficient funds, according to court papers. The balance on the account rarely exceeded $2,000.Within days of the end of each Quest fiscal quarter, Cash directed that Quest funds, in an amount identical to the amount of the recent check from Rockport Energy, be wired to the Rockport account enabling each of the account checks to clear the bank.Grose directly participated in the fraudulent quarter-end transactions by authorizing and/or effecting the wire transfers from Quest to the Rockport account, the Oklahoma Securities Commission alleges.
The transactions between Rockport Energy and Quest were not disclosed in filings by Quest with the Securities and Exchange Commission, court papers show.