Chesapeake Energy discloses SEC investigation in filing - WBOY.com: Clarksburg, Morgantown: News, Sports, Weather

Chesapeake Energy discloses SEC investigation in filing

Posted: Updated:
  • Local News

  • Tuesday, May 21 2013 12:41 PM EDT2013-05-21 16:41:36 GMT
    Courtesy: American Red Cross
    A massive tornado ripped through Moore, Oklahoma, killing over 50 people, including children. It also demolished an elementary school and reduced home to piles of splintered wood.
    A massive tornado ripped through Moore, Oklahoma, killing over 50 people, including children. It also demolished an elementary school and reduced home to piles of splintered wood.
  • Tuesday, May 21 2013 4:44 AM EDT2013-05-21 08:44:41 GMT
    Our warmest day of the next week pushes temperatures towards 90 degrees in some places. With the daytime heating, an afternoon/evening thunderstorm exists for the area. The cold front begins to push through
    Hot, Hot, Hot
  • Tuesday, May 21 2013 12:05 AM EDT2013-05-21 04:05:55 GMT
    Municipal elections in Salem and Clarksburg are upon us, and voters are getting the chance to meet the candidates.
    Municipal elections in Salem and Clarksburg are upon us, and voters are getting the chance to meet the candidates.

In a recent filing with the Securities Exchange Commission, Chesapeake Energy disclosed a federal financial investigation into its CEO and business.

The investigation is related to the Founders Well Participation Program, an executive perk that allowed CEO Aubrey McClendon to take a financial interest in the wells drilled by Chesapeake. The program would allow McClendon to have up 2.5 percent interest in a well.

Additionally, the company was looking into McClendon's borrowing of more than $1 billion from EIG Global Energy Partners, a major partner with Chesapeake.

Last month, Chesapeake announced it had conducted an internal investigation of the practices the SEC is investigating and concluded there was no evidence of intentional wrongdoing.

On Friday, the company's 10-K disclosure revealed that an investigation initiated last May by the SEC is ongoing.

"On December 21, 2012, the SEC's Fort Worth Regional Office advised Chesapeake that its inquiry is continuing as an investigation, and it has issued subpoenas for information and testimony," the filing states. "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 organizations."

The board has already taken action to end the Founders Well Participation Program and Aubrey McClendon has agreed to step down as CEO on April 1. McClendon was one of the founders of Chesapeake.