So, McClendon still has about 2-1/2 years to flip wells?
Following consultation with the company's Board of Directors, Mr. McClendon will separately disclose supplemental information regarding the interests he has acquired through the company's Founder Well Participation Program as of December 31, 2011. The company also announced the Board of Directors is reviewing the financing arrangements between Mr. McClendon (and the entities through which he participates in the FWPP) and any third party that has had or may have a relationship with the company in any capacityWhat about interests McClendon has acquired so far in 2012? And those he may acquire from present day through December 31, 2015?
Chesapeake also wishes to clarify a statement appearing in its April 18, 2012 press release captioned "Chesapeake Energy Corporation General Counsel Henry J. Hood Issues Statement." The statement that "the Board of Directors is fully aware of the existence of Mr. McClendon's financing transactions" was intended to convey the fact that the Board of Directors is generally aware that Mr. McClendon used interests acquired through his participation in the FWPP as security in personal financing transactions. The Board of Directors did not review, approve or have knowledge of the specific transactions engaged in by Mr. McClendon or the terms of those transactions.
FULLY AWARE actually means GENERALLY AWARE? Since when?
to repeat: " The Board of Directors did not review, approve or have knowledge of the specific transactions engaged in by McClendon or the terms of those transactions."So they were Fully Aware , but now only Generally Aware but had no knowledge of specific transactions? So they kind of knew but not really knew McClendon was up to something, but didn't know what???
SEC starts probe of Chesapeake CEO's well stakes - Reuters, April 26, 2012
Note: This is an INFORMAL INQUIRY, the first of many steps the U.S. Securities and Exchange Commission may take.
That investigation, being led by the SEC's office in Fort Worth, Texas, comes after Reuters reported about loans McClendon had obtained on those wells that raised concerns about a potential conflict of interest by the company's CEO.
Per SEC Page: All SEC investigations are conducted privately. Facts are developed to the fullest extent possible through informal inquiry, interviewing witnesses, examining brokerage records, reviewing trading data, and other methods. With a formal order of investigation, the Division's staff may compel witnesses by subpoena to testify and produce books, records, and other relevant documents. Following an investigation, SEC staff present their findings to the Commission for its review. The Commission can authorize the staff to file a case in federal court or bring an administrative action. In many cases, the Commission and the party charged decide to settle a matter without trial.
Common violations that may lead to SEC investigations include: misrepresentation or omission of important information about securities; manipulating the market prices of securities; stealing customers' funds or securities; violating broker-dealers' responsibility to treat customers fairly; insider trading (violating a trust relationship by trading on material, non-public information about a security); and selling unregistered securities.
UPDATE 4-27-12 Previous Report: Chesapeake Energy Corporation today announced that its Board of Directors has determined that it does not intend to extend the company's Founder Well Participation Program (FWPP) with its chief executive officer, Aubrey K. McClendon, beyond its present 10-year term ending December 31, 2015
The original employment agreement from 2008 covered the FWPP until 12/21/15.
It's now being reported as
Chesapeake said it plans to renegotiate McClendon’s employment contract to terminate the program before its scheduled expiration at the end of 2015. The board is examining McClendon’s borrowing activity and his connections with companies that have had or “may have a relationship with [Chesapeake] in any capacity.”