Military Medals and a Famous Last Name: How a Con Man Made Off With Millions in Texas
Derek Hamm—no relation to fracking tycoon Harold Hamm—cultivated a persona of war hero turned family oilman before prosecutors stepped in.
TYLER, Texas—In a city where reverence for the oil fields and veterans runs deep, Derek Hamm made a powerful impression.
Six-foot-three with a mountain man’s beard, he wore a jacket festooned with combat medals he said were from Green Beret tours in Iraq and Afghanistan, and was always accompanied by a service dog to help ease his PTSD, acquaintances recalled.
Charming and well-spoken, Hamm told people he was the favorite nephew of one of the pioneers of fracking, the Oklahoma oil tycoon Harold Hamm, and was amassing his own empire of wells.
That pedigree opened doors in East Texas. Hamm was soon drumming up investments at an exclusive country club and hobnobbing with the retired baseball star Mark Teixeira on a private dove hunt.
The problem was, virtually everything about Derek Hamm was a lie.
Hamm, 40, was actually a grifter with an encyclopedic memory and a string of criminal convictions, according to federal prosecutors. He had spent a year in Iraq as an Army National Guard infantryman but was no decorated Special Forces soldier. He had no relation to Harold Hamm.
Using a salesman’s wiles, Hamm persuaded people to give him at least $2.28 million for various drilling ventures that never materialized—until the FBI got involved. He pleaded guilty to violating the Stolen Valor Act, which prohibits falsely using military medals to obtain benefits, along with fraud charges.
“The oil and gas industry got away from me,” Hamm said at his sentencing in December. “Instead of just being honest with my family about things making a bad turn, I decided to lie.”
Since the first Texas oil gusher hit Spindletop in 1901, the Lone Star State has drawn a long procession of swindlers who have taken advantage of investors dazzled by promises of easy fortune. But the story of Derek Hamm has left those he preyed upon—and authorities—stunned by the extent of his con.
He drove a Bentley, wore sports coats draped in jewelry and made a show of arriving late to church in sunglasses with his wife and children before heading for the front row.
“He was bigger than life. He would walk in someplace and immediately be at the center of the room. You’d be fascinated with him, like ‘Who is this guy?’” said Taylor White, a financial planner who said he became Hamm’s close friend before they fell out several years ago.
Hamm told friends he had moved from Indiana and started a business selling drilling parts. That much was true, authorities say. At the core of Hamm’s magnetism was his military service: He told people he had earned a Silver Star, Bronze Star, Distinguished Service Cross and Purple Heart during Middle East tours.
Hamm had a Bronze Star license plate on his truck, a service dog named Melekh and detailed stories of battles.
He began telling people that his uncle was Harold Hamm. And he said that Harold Hamm and his multibillion-dollar fracking company, Continental Resources, were backing him.
More money, more problems
On Jan. 20, 2022, federal prosecutors obtained a 33-count indictment against Hamm from a grand jury. Four days later, he was taken into federal custody.
Hamm had less than $10,000 in cash left, authorities say. He blew virtually all of the money he had bilked on expensive jewelry pieces, including a $65,000 Rolex, vehicles and a chartered plane, according to court documents. Investigators also found nearly 50 guns, which he was barred from possessing because of his prior criminal convictions.
At Hamm’s sentencing on Dec. 7, Assistant U.S. Attorney Robert Wells said that Hamm would show off his gun collection and lie about people he had killed in combat to intimidate those he swindled from confronting him.
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