Feds look to seize assets from Jeannette man

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Federal prosecutors Monday filed a lawsuit seeking to seize assets valued at about $1 million that they said came from the fraudulent sales of mineral rights.

According to the complaint, Derek Candelore of Jeannette created firms called Clark Lumber Co., McComb Hines & Beggs Trust and Davis Minerals LLC, as well as opening bank accounts in the names of those entities and of Marcellus Land Services and Stallion Oil and Gas.

Then he "fraudulently conveyed mineral rights from multiple properties, without the knowledge or consent of the true owners" to his companies, according to the complaint.

Those companies leased the mineral rights to third parties, according to the complaint. It said that from February 2011 on, Mr. Candelore made around $1.86 million in proceeds.

The complaint said that Mr. Candelore, through an unidentified attorney, has already given the U.S. government $679,263 "which Candelore acknowledge[d] were proceeds of fraud." The complaint seeks the forfeiture of that money plus a building on Woodhaven Drive in Jeannette which Mr. Candelore bought for $385,000 in April.

There is no criminal charge against Mr. Candelore.

neigh_east


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