Fraud

One of two landmen accused of defrauding property owners in Washington County, PA, has pleaded guilty to one count of mail fraud in federal court.

A Pennsylvania lawmaker is calling for federal and state authorities to investigate the state Department of Environmental Protection (DEP), alleging that it committed fraud and misconduct when it tested water supplies suspected of being tainted by natural gas drilling.

The attorney general of New York has issued subpoenas to three companies looking to develop oil and gas resources in the Marcellus Shale, part of an investigation into how the companies calculated production estimates and drilling costs to investors.

The Securities and Exchange Commission (SEC) Friday charged Houston-based El Paso Corp., two subsidiaries and five former employees with fraud for materially overstating the company’s proved oil and natural gas reserves and misleading investors.

The Securities and Exchange Commission (SEC) Friday charged Houston-based El Paso Corp., two subsidiaries and five former employees with fraud for materially overstating the company’s proved oil and natural gas reserves and misleading investors.

The U.S. Bankruptcy Court, Southern District of New York, Thursday rejected a request by Rosetta Resources Inc. to dismiss Calpine Corp.’s allegations of fraud by the oil and gas producer. Calpine made the charges as part of its ongoing Chapter 11 bankruptcy proceeding. A trial is now expected in December.

The Securities and Exchange Commission (SEC) last week charged Nicor Inc.’s former CEO, CFO and treasurer with committing financial fraud between 1999 and 2002.

While cracking down on market fraud and abuse with tough new penalties, the draft energy bill also seeks to increase transparency in natural gas prices by ordering regulated entities to report prices to the Federal Energy Regulatory Commission and to price publishers.

Another day, another corporate scandal. On Thursday, the target was Westar Energy Inc. Chairman David Wittig, who was indicted by a federal grand jury on charges of money laundering, conspiracy and four counts of submitting false books to a federally insured bank in Topeka, KS.