Reuters: Chesapeake and CEO McClendon Under SEC Investigation

• Joe Wertz
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  Joe Wertz was a reporter and managing editor for StateImpact Oklahoma from 2011-2019. He reported on energy and environment issues for national NPR audiences and other national outlets. He previously worked as a managing editor, assistant editor and staff reporter at several major Oklahoma newspapers and studied journalism at the University of Central Oklahoma.

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Chesapeake Energy CEO Aubrey McClendon and Oklahoma City Thunder owner Clay Bennet chat during an Oklahoma City Thunder game.

What began as an “informal inquiry” in May 2012 has now become an “investigation,” Reuters reports.

The U.S. Securities and Exchange Commission has issued subpoenas for information and testimony about a controversial CEO perk that allowed Aubrey McClendon a stake in every well the Oklahoma City energy company drilled, according to a regulatory filing disclosed Friday.

News of the SEC’s formal investigation comes just nine days after the company absolved McClendon, who is retiring from the company April 1, of any “intentional wrongdoing” in an internal probe.

From Reuters:

“I’m now confused because the board just said everything was fine,” said Fadel Gheit, oil analyst at Oppenheimer. “I really thought the board had an iron-clad, air-tight grip on the situation. Unfortunately the saga continues.”