View Full Version : Aubrey McClendon



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Jersey Boss
03-01-2016, 04:58 PM
Wow is all to be said.
Aubrey McClendon indicted | News OK (http://newsok.com/aubrey-mcclendon-indicted/article/5482220)
Aubrey McClendon has been charged by a federal grand jury with conspiring to rig bids for the purchase of oil and natural gas leases in northwest Oklahoma, the Department of Justice announced Tuesday.

The indictment in Oklahoma City federal court alleges that McClendon orchestrated a conspiracy between two large oil and gas companies to not bid against each other for the purchase of certain oil and natural gas leases in northwest Oklahoma.

Pete
03-01-2016, 05:01 PM
I wonder the possible penalties if convicted?

Could jail time be involved?

gopokes88
03-01-2016, 05:02 PM
Half of me thinks he'll get off with a fine or something the other half thinks they wouldn't charge him without a rock solid case

Pete
03-01-2016, 05:04 PM
If they have a rock solid case, I'm sure there will be some sort of plea agreement...

Just wonder if jail time is a possibility in the worse case scenario.

zookeeper
03-01-2016, 05:30 PM
If they have a rock solid case, I'm sure there will be some sort of plea agreement...

Just wonder if jail time is a possibility in the worse case scenario.

Absolutely it would be. If the federal prosecutors want to make a point with McClendon and his shenanigans then they will not be offering plea deals that wouldn't include prison time. Madoff, Martha Stewart, and other white collar criminals didn't get a pass, though admittedly many do. I think when all is said and done, the DOJ will show him and his legal team a long list of things they could nail him on, only sought the most serious count and will follow through. I noticed the True Bill was sought by the Antitrust division of the Department of Justice. They don't mess around. Conspiracy to rig the system while running a public corporation is a serious offense. A lot of people swore this day would come. Here we are.

liirogue
03-01-2016, 05:39 PM
Any word on who the other company/conspirator is? According to the indictment, it's another OKC-based company.

Timshel
03-01-2016, 05:44 PM
If they have a rock solid case, I'm sure there will be some sort of plea agreement...

Just wonder if jail time is a possibility in the worse case scenario.

I haven't read the indictment yet to know the specific charges, but as the DOJ's press release says, each violation of the Sherman Act carries a maximum penalty of 10 years in jail and $1 million fine. I would be surprised if it came to that, but I suppose your worst case scenario is 10 years times each count for which he is convicted.

My next two questions which may have more implications on the city/state are: 1) who is the other company involved in the conspiracy [Edit: liirogue beat me to this question.]; and 2) what will be the results of the following sentence from the DOJ's press release? "This is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the oil and natural gas industry"

zookeeper
03-01-2016, 05:46 PM
He is being charged with some very serious violations of the Sherman Act.

"Beginning at least as early as December 2007 and continuing until at least as late as March 2012, the exact dates being unknown to the Grand Jury, in the Western District of Oklahoma, the defendant, AUBREY K. McCLENDON, and his co-conspirators knowingly interred into and was in unreasonable restraint of interstate commerce in violation of Section 1 of the Sherman Act (15 U.S.C. § 1)."

From the DOJ:

"Violation of the Sherman Act is a felony punishable by a fine of up to $10 million for corporations, and a fine of up to $350,000 or 3 years imprisonment (or both) for individuals, if the offense was committed before June 22, 2004. If the offense was committed on or after June 22, 2004, the maximum Sherman Act fine is $100 million for corporations and $1 million for individuals, and the maximum Sherman Act jail sentence is 10 years. Under some circumstances, the maximum potential fine may be increased above the Sherman Act maximums to twice the gain or loss involved. In addition, collusion among competitors may constitute violations of the mail or wire fraud statute, the false statements statute, or other federal felony statutes, all of which the Antitrust Division prosecutes."


"In addition to receiving a criminal sentence, a corporation or individual convicted of a Sherman Act violation may be ordered to make restitution to the victims for all overcharges. Victims of bid-rigging and price-fixing conspiracies also may seek civil recovery of up to three times the amount of damages suffered."
https://www.justice.gov/atr/price-fixing-bid-rigging-and-market-allocation-schemes

Pete
03-01-2016, 05:50 PM
Thanks to all for the info.

Holy cow, this is serious business.

I'm sure they wouldn't bring charges if they didn't think they could prove them.

zookeeper
03-01-2016, 05:51 PM
I haven't read the indictment yet to know the specific charges, but as the DOJ's press release says, each violation of the Sherman Act carries a maximum penalty of 10 years in jail and $1 million fine. I would be surprised if it came to that, but I suppose your worst case scenario is 10 years times each count for which he is convicted.

My next two questions which may have more implications on the city/state are: 1) who is the other company involved in the conspiracy [Edit: liirogue beat me to this question.]; and 2) what will be the results of the following sentence from the DOJ's press release? "This is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the oil and natural gas industry"

Obviously, the Grand Jury will be handing down further indictments. Neither Company A or Company B are named as defendants. In a Chesapeake statement, they say this has been going on for some time and they have been cooperating with the federal investigation in return for leniency.

“Chesapeake has been actively cooperating for some time with a criminal antitrust investigation by the Department of Justice regarding past land leasing practices and has received conditional leniency under the Antitrust Division’s Leniency Program...Chesapeake does not expect to face criminal prosecution or fines relating to this matter. Chesapeake has taken significant steps to address legacy issues and enhance legal and regulatory compliance throughout the organization." - Chesapeake Statement

Another key: The Justice Department’s investigation is ongoing.

Bloomberg has a good summary of what we know - so far.
Ex-Chesapeake CEO McClendon Indicted Over Lease Bid Rigging - Bloomberg Business (http://www.bloomberg.com/news/articles/2016-03-01/chesapeake-co-founder-mcclendon-indicted-over-lease-bid-rigging)

Pete
03-01-2016, 05:54 PM
^

Yes, that's the rub, isn't it?

Aubrey is no longer at CHK and thus can't control what information was given to the investigators. The current CHK management -- who happen to be suing him for other alleged improprieties -- have every motivation to share everything in exchange for pinning any wrong-doing on McClendon and keeping themselves out of hot water.

Looks like Chesapeake is not being charged at all.

Timshel
03-01-2016, 06:13 PM
Another key: The Justice Department’s investigation is ongoing.



My point with quoting the DOJ release is that it can be interpreted to state they are investigating other instances of lease bid rigging not related to this indictment and these parties. If true, which I'm not saying is the case or even likely, it could be an entirely different fish to fry.

zookeeper
03-01-2016, 06:37 PM
Best original reporting on this story is right here:
Former Chesapeake CEO McClendon charged with bid-rigging of land leases | Reuters

(http://www.reuters.com/article/us-usa-crime-mcclendon-idUSKCN0W35Y7)"The Justice Department indictment paves the way for what may be one of the highest-profile criminal antitrust cases against a well-known U.S. CEO in decades, and could thrust McClendon, a controversial figure whose aggressive leasing tactics are legendary in the energy industry, into the highest-stakes legal battle of a decades-long career."

"Chesapeake, SandRidge, and McClendon had previously disclosed in securities filings that they were being investigated by the Justice Department's Antitrust Division."

Pete
03-01-2016, 06:43 PM
I wonder if Company B was SandRidge while under Tom Ward's watch?


Chesapeake, SandRidge, and McClendon had previously disclosed in securities filings that they were being investigated by the Justice Department's Antitrust Division.

zookeeper
03-01-2016, 06:47 PM
I wonder if Company B was SandRidge while under Tom Ward's watch?

I would think the next True Bill will be for Tom Ward. If only because McClendon can't engage in a conspiracy with himself and we know there is an Oklahoma City-based 'Company B'. Of course, it could always be others at Sandridge, but their relationship begs the speculation.

Pete
03-01-2016, 06:49 PM
From that Reuters article:


The seven-page indictment alleges that McClendon set up a conspiracy of two energy companies which agreed not to bid against each other in purchasing oil and natural gas leases in northwest Oklahoma from 2007 to 2012. The indictment did not name either company.


Ward left Chesapeake in 2006 and founded competitor SandRidge Energy Inc (SDOC.PK) the same year.


Chesapeake, SandRidge, and McClendon had previously disclosed in securities filings that they were being investigated by the Justice Department's Antitrust Division.

Tom Ward and McClendon were both deposed from their respective companies in 2013.

zookeeper
03-01-2016, 06:50 PM
This will get huge play in the sports world, too.
Oklahoma City Thunder part owner Aubrey McClendon indicted on bid-rigging charges (http://espn.go.com/nba/story/_/id/14880310/oklahoma-city-thunder-part-owner-aubrey-mcclendon-indicted-bid-rigging-charges)

zookeeper
03-01-2016, 06:54 PM
Tom Ward and McClendon were both deposed from their respective companies in 2013.

You have to wonder if Sandridge is also availing themselves of the Antitrust Division’s Leniency Program. If so, with Ward being gone, they are both on the outside looking in at this point. Can you imagine McClendon knowing there's nothing he can do? At least until this all shakes out and he knows what all he will need to defend, something is actually out of his control.

gopokes88
03-01-2016, 10:45 PM
If I had to bet I would bet that CHK emerges relatively unscathed.

On Aubrey, once again I'm conflicted I think he's smart enough to push that line without crossing it but I also know the DOJ's conviction rate is something ridiculous like in the 90+% range

Pete
03-02-2016, 05:51 AM
If I had to bet I would bet that CHK emerges relatively unscathed.

The press release says that CHK will not be charged.

Jeepnokc
03-02-2016, 06:30 AM
Reading article in the Oklahoman, the time line printed indicates the other company involved may be Encana Corp and the leases were in Michigan.

Pete
03-02-2016, 06:36 AM
Reading article in the Oklahoman, the time line printed indicates the other company involved may be Encana Corp and the leases were in Michigan.

That was for another anti-trust case already settled in the state of Michigan.

This indictment is for leases in NW Oklahoma and specifically says Company B is based in OKC.

I'm 99.9% sure it's SandRidge under Tom Ward.

Jeepnokc
03-02-2016, 06:57 AM
That was for another anti-trust case already settled in the state of Michigan.

This indictment is for leases in NW Oklahoma and specifically says Company B is based in OKC.

I'm 99.9% sure it's SandRidge under Tom Ward.
Thats what I get for reading the paper before my 2nd cup of coffee. :Smiley278

Pete
03-02-2016, 06:59 AM
Follow the Reuters coverage.

They did all the original reporting on Chesapeake that led to McClendon getting ousted and that started this whole DOJ investigation in the first place.

They had reporters based here for quite some time investigating all this as recent as late last year.

jn1780
03-02-2016, 10:02 AM
On Aubrey, once again I'm conflicted I think he's smart enough to push that line without crossing it but I also know the DOJ's conviction rate is something ridiculous like in the 90+% range

Aubrey isn't a banker so he's screwed.

Tundra
03-02-2016, 11:04 AM
From my understanding the other companies that were involved were AM's family members, so it was a win-win for the McClendon's coming and going.

BBatesokc
03-02-2016, 12:53 PM
Moot point now. He's dead.

http://kfor.com/2016/03/02/police-former-ceo-of-chesapeake-aubrey-mcclendon-killed-in-car-accident/

warreng88
03-02-2016, 12:53 PM
Um, this is crazy if true:

Police: Former CEO of Chesapeake Aubrey McClendon killed in car accident | KFOR.com (http://kfor.com/2016/03/02/police-former-ceo-of-chesapeake-aubrey-mcclendon-killed-in-car-accident/)

Urbanized
03-02-2016, 12:54 PM
Just broke on Journal Record too. Holy ****.

warreng88
03-02-2016, 12:54 PM
Moot point now. He's dead.

Police: Former CEO of Chesapeake Aubrey McClendon killed in car accident | KFOR.com (http://kfor.com/2016/03/02/police-former-ceo-of-chesapeake-aubrey-mcclendon-killed-in-car-accident/)

Beat me by one minute.

Anonymous.
03-02-2016, 12:55 PM
Holy f!ck. Is this really happening?

FighttheGoodFight
03-02-2016, 12:56 PM
McClendon has died in a car wreck.

https://twitter.com/okcpd/status/705117036842610688

I wonder if this was a suicide. Very shocking

warreng88
03-02-2016, 12:56 PM
Aubrey McClendon dies in car accident

By: Sarah Terry-Cobo The Journal Record March 2, 2016

OKLAHOMA CITY – Aubrey Kerr McClendon died Wednesday in a car crash, Oklahoma City Police Department officials confirmed. He was 56 years old.

The entrepreneur is most well-known for co-founding Chesapeake Energy Corp. in 1989. He started American Energy Partners LP in April 2013, after leaving Chesapeake.

The son of Joe and Carole McClendon grew up in Oklahoma City. He attended Duke University and graduated with a history degree in 1981. He was the grand-nephew of former Oklahoma Gov. Robert S. Kerr, founder of Kerr-McGee.

McClendon and his wife, Katie, returned to Oklahoma City after graduation to work for his uncle, Aubrey Kerr, at small oil company Jaytex.

He started Chesapeake a few years later, and the company went public in 1993. McClendon helped the driller grow to become the nation’s second-largest natural gas producer.

While at Chesapeake, he met in small groups with new employees to get to know them. He had a penchant for knowing Oklahoma high school mascots, and asked about those from employees who grew up out of state. The company provided some of McClendon’s favorite to Chesapeake workers.

Tuesday evening, the U.S. Department of Justice indicted McClendon on charges of conspiring to rig bids to buy oil and natural gas leases in northwest Oklahoma.

McClendon was part owner of the NBA’s Oklahoma City Thunder.

More detail will be available soon.

Bellaboo
03-02-2016, 12:56 PM
I'd guess suicide or impaired ?

David
03-02-2016, 12:58 PM
Holy crap.

gopokes88
03-02-2016, 12:58 PM
Holy sh*t

bchris02
03-02-2016, 12:58 PM
McClendon has died in a car wreck.

https://twitter.com/okcpd/status/705117036842610688

I wonder if this was a suicide. Very shocking

My guess is either a suicide or a murder (by somebody who doesn't want info revealed during a trial). I don't buy that he died in a car "accident".

FighttheGoodFight
03-02-2016, 12:59 PM
Honestly it will be weird not seeing him in OKC. He was a big figure here for a long time. I'm still a bit dazed.

Pete
03-02-2016, 12:59 PM
OMG.

Cue the conspiracy theorists.

Pete
03-02-2016, 01:00 PM
My guess is either a suicide or a murder (by somebody who doesn't want info revealed during a trial). I don't buy that he died in a car "accident".

See?

David
03-02-2016, 01:00 PM
35 users browsing this thread.

Dustin
03-02-2016, 01:01 PM
So sad for his loved ones.

If it was suicide (big, ginormous if), it makes you wonder just how guilty he was.

FighttheGoodFight
03-02-2016, 01:02 PM
More info:

https://twitter.com/SheldraBrigham/status/705119460475047936

Look like suicide. He didn't slow down

https://twitter.com/ReutersBiz/status/705120617184550912

The vehicle was so burned they didn't know if a seat belt was used.

AP
03-02-2016, 01:04 PM
Yeah the police are basically confirming he ran the car into the wall on purpose. No conspiracy there.

mkjeeves
03-02-2016, 01:04 PM
One car collision with a bridge? It will be interesting to see what comes out...estimated rate of speed, cell phone in use or not, witnesses?

Pete
03-02-2016, 01:06 PM
Could have very easily -- and very likely -- been on his phone.

AP
03-02-2016, 01:08 PM
OKC Police say Aubrey McClendon had plenty of chances to change his course and he did not.

Bullbear
03-02-2016, 01:09 PM
Regardless if he was guilty or not guilty.. if it was intentional or an accident. very sad for his friends and family. a very rough time for all involved.

Pete
03-02-2016, 01:10 PM
OKC Police say Aubrey McClendon had plenty of chances to change his course and he did not.

But... If he was jacking with his phone and looked down briefly, the car could easily drift and smack that abutment.

Were their witnesses?

5alive
03-02-2016, 01:12 PM
Former Chesapeake CEO Aubrey McClendon killed in crash Wednesday morning | Oklahoma City - OKC - KOCO.com (http://www.koco.com/news/body-found-in-car-on-fire-in-northeast-oklahoma-city/38297856)

FighttheGoodFight
03-02-2016, 01:13 PM
Official OKCPD response: https://www.facebook.com/okcpd/videos/vb.65444419168/10153987261814169/?type=2&theater

Speed played a factor. 2 to 3 weeks to figure it all out.

sooner88
03-02-2016, 01:13 PM
Think it's really premature for them to basically imply that it was suicide without knowing all the facts.

5alive
03-02-2016, 01:13 PM
https://www.facebook.com/okcpd/videos/vb.65444419168/10153987261814169/?type=2&theater

gopokes88
03-02-2016, 01:14 PM
This makes me so sad. A controversial figure but someone who undoubtly did a lot of great things for Oklahoma and Oklahoma City

FritterGirl
03-02-2016, 01:15 PM
Could have very easily -- and very likely -- been on his phone.

There is also a great deal of wildlife in that area, including deer, that tend to pop out of the woods unexpectedly, I'm not saying this is what happened, but there are multiple possibilities beyond just what some people see as a too-convenient coincidence.

This will have a huge ripple effect on the community. He was a giant of industry and name well known in philanthropy circles. My condolences go to his family, employees and Thunder family, as well.

MagzOK
03-02-2016, 01:15 PM
Think it's really premature for them to basically imply that it was suicide without knowing all the facts.


Reports are that he was driving at a high rate of speed and there is a lack of skid marks leading to the collision site.

5alive
03-02-2016, 01:15 PM
No skid marks
https://twitter.com/AndrewKnittle/status/705118819367256064

Pete
03-02-2016, 01:16 PM
Think it's really premature for them to basically imply that it was suicide without knowing all the facts.

We need to pump the brakes.

I don't believe any of that is coming from law enforcement.

Martin
03-02-2016, 01:17 PM
No skid marks
i don't think that's conclusive of anything... a distracted driver wouldn't have time to brake either.

sooner88
03-02-2016, 01:18 PM
We need to pump the brakes.

I don't believe any of that is coming from law enforcement.

From Capt. Balderrama:

“He pretty much drove straight into the wall,” Balderrama said. “The information out there at the scene is that he went left of center, went through a grassy area right before colliding into the embankment. There was plenty of opportunity for him to correct and get back on the roadway and that didn’t occur.”