Oilman's alleged fraud tipped by MTV

NASHVILLE, Dec. 4 (UPI) -- An MTV reality show about a Tennessee oilman's daughter may have tipped off investors they allegedly were being defrauded, authorities say.

The U.S. Attorney's Office in Nashville said Gary Milby, 55, former owner of Mid America Energy Co., was indicted by a federal grand jury on three counts of mail fraud, three counts of money laundering and one count of securities fraud, The (Nashville) Tennessean reported Friday.

The indictment in the multimillion-dollar case alleges Milby, who had lived in Gallatin and moved to Campbellsville, Ky., inflated claims on returns from wells. The wells were to be drilled under limited partnerships across Kentucky.

The indictment alleges he used investors' money to pay company salaries and for personal spending instead of investing it in gas and oil production, the indictment says. Milby wired $100,000 to an account in the Turks and Caicos Islands, which offers tax-exempt status.

And in 2007 Milby threw his daughter, Ariel, a lavish birthday party featured on an episode of MTV's "My Super Sweet 16." The series featured opulent birthday parties for teens thrown by their relatives, The Tennessean said.

Ariel was given a shopping spree, a new BMW and a helicopter ride on the show as cameras caught the action and as Ariel exclaimed, "I love oil. Oil means shoes and cars and purses."