LAWSUITS NEWS & LEGAL INFORMATION
Dynegy CFO
Salt Lake City, UT: (Oct-01-07) The US Securities and Exchange Commission (SEC) brought charges against Robert Doty, former Dynegy Inc. Chief Financial Officer, alleging that he helped the energy company disguise loans to inflate its cash flow. The SEC claimed that Doty was involved in the decision to proceed with a 2001 plan called Project Alpha, which Dynegy allegedly used to inflate cash from operations by $300 million through a series of natural-gas trades. The money was essentially a loan that Dynegy reported as gas-trading profits. In 2002, Dynegy agreed to pay $3 million to settle SEC allegations that it used Project Alpha to deceive investors.
In a settlement reached, Robert Doty has agreed to pay $376,650 to settle the allegations. As part of the settlement, Doty agreed not to serve as an officer or director of a publicly traded company for five years. He also agreed to cooperate with any further SEC investigation into the matter. Doty, who left Dynegy in 2002, will pay $200,000 in disgorgement and pre-judgment interest of $56,560. He also agreed to pay $120,000 in civil penalties. [DESERET MORNING NEWS: DYNEGY CFO]
Published on Oct-2-07
In a settlement reached, Robert Doty has agreed to pay $376,650 to settle the allegations. As part of the settlement, Doty agreed not to serve as an officer or director of a publicly traded company for five years. He also agreed to cooperate with any further SEC investigation into the matter. Doty, who left Dynegy in 2002, will pay $200,000 in disgorgement and pre-judgment interest of $56,560. He also agreed to pay $120,000 in civil penalties. [DESERET MORNING NEWS: DYNEGY CFO]
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