RECENT SECURITY FRAUD CASE CONVICTION RESULTED FROM AGENCY
COOPERATION


      On November 13, 2006 a Burnet county jury found Melvin Dean Marshall guilty of
security fraud and theft in the 33rd judicial court. Marshall an 80 year old Marble Falls
business man was given an 11 year sentence in the state penitentiary and ordered to pay a
fine of $10,000. No probation was given.
      This case involved a scheme to dupe thousands of dollars from good citizens of Burnet
County.
      The District Attorney’s office has jurisdiction over all felony case in all state courts
including the 33rd and 424th county of the 4 county judicial districts. No state government
agency can prosecute a case in these courts without the permission and/or participation of
the District Attorney’s office, even where an outside agency has done the investigation.
Permission to just investigate a case by an outside agency is required from the District
Attorneys office if it is a state offense.
      It is not uncommon for a rural District Attorney’s office with minimum staff and budget to
call on one of these agencies to lend their personnel and/or specialists in certain fields of
law enforcement to handle the investigation and even prosecute certain offenses in behalf
of the local District Attorney’s office. One of these agencies is the Attorney General’s office
in multiple types of offenses such as open meetings cases, open records cases, some types
of child pornography, cases where computer systems are used; and even death penalty
cases.  Other agencies often called to assist include, Texas State Insurance Board for
insurance fraud cases, the Texas State Securities Board (SSB) for security fraud cases, the
Texas State Auditors office where complicated money laundering cases are involved.  
      The types of cases mentioned usually involve volumes of documents, countless hours
of investigation and specialists in forensic accounting and analysis. “These agencies are
more than willing to assist or even leads the prosecution of these offenses for local
prosecutors at no expense to the counties under the requesting District Attorney’s
Jurisdiction,” said District Attorney Sam Oatman.
      In the Marshall case, the Texas State Securities Board (SSB) enforcement division was
called in from the beginning.  This was not because the District Attorney office was unable or
unwilling to prosecute.  The SSB prosecuted the case and justice was served.  The District
Attorney’s office was aware of all aspects of the investigation and even prepared the
judgment for the SSB following conviction.
      “We will continue to review complex and important cases of this kind and seek
investigative and prosecution resources from outside State agencies, if we deem necessary,
in order to bring their specialized resources into our District.  This is to ensure the best
justice in this type of case,” explained Oatman.