In an agreement filed Monday, Brian Rose, who competed part-time in the NASCAR Camping World Truck Series primarily in the early 2000s, will plead guilty for his role in creating a fake coal mining company that swindled investors of $15 million.
Bob Pockrass of the Sporting News writes that Rose will plead guilty to charges of wire fraud and mail fraud, and faces a sentence between eight to 20 years in prison. However, as part of the agreement, the government will drop additional charges of wire fraud against him.
Pockrass adds that no sentencing date has been set for Rose, who has been in custody since June. It’s also not the first time that the Rose family has had issues of this nature, as Rose’s own father was previously convicted of tax evasion and ordered to pay $15.4 million to settle allegations of securities fraud.
Per the indictment, Rose (under a fake name) and his co-conspirators lured in investors for coal mines and also set up another business entity after the Securities and Exchange Commission started to investigate in late 2013.
The group created ghost vendor companies to continue the scheme, and when no funds were paid, they persuaded investors to swap ownership of different mines – allegedly with false financial statements, mining expenses, and documentation of coal produced.
The indictment goes on to say that some of the money that was bilked from investors went toward Rose’s race team and buying new race cars.
Rose has competed in 41 Truck Series races, the bulk of those starts coming during the 2001 and 2002 seasons. In 2002, he failed to qualify for a Sprint Cup event at Martinsville Speedway.
He has not raced in the Truck Series since 2010, but most recently took part in this past year’s ARCA season opener at Daytona International Speedway, where he finished 15th.