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Chesapeake Discloses SEC Investigation Under Way
YOUNGSTOWN, Ohio -- Chesapeake Energy Corp. today disclosed in its annual report filed with the U.S. Securities and Exchange Commission that the SEC is conducting a formal investigation into insider dealings involving its outgoing CEO, Aubrey McClendon.
Stated Chesapeake in the SEC filing, ”The SEC's Fort Worth Regional Office advised Chesapeake [Dec. 21] that its inquiry is continuing as an investigation, and it has issued subpoenas for information and testimony. The company, including Mr. McClendon, is providing information to the SEC in connection with this matter. The company is also responding to related inquiries from other governmental and regulatory agencies and self-regulatory organization."
On May 2, Chesapeake and McClendon were notified by the SEC that the regulatory agency "had commenced an informal inquiry."
Less than two weeks ago, Chesapeake announced (READ STORY) that its internal review did not find any “intentional misconduct” on the part of the company or McClendon. Nor did the company violate antitrust laws in regard to the 2010 acquisition oil and gas rights in Michigan, Chesapeake said.
McClendon has the right, through June 2014, to buy a stake – and pay for his share of the cost -- in wells that Chesapeake drills. It was disclosed last year in a series of reports by the Reuters news service that McClendon borrowed millions of dollars from companies that invest in Chesapeake to pay for his ownership shares in the wells.
The insider dealings are the focus of shareholders’ lawsuits filed against Chesapeake.
McClendon’s resignation as CEO, announced Jan. 29 (READ STORY) is effective April 1.
Published by The Business Journal, Youngstown, Ohio.
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