Ex-ProPetro CEO Fined Over Undisclosed Perks

Texas oilfield services agency ProPetro and previous CEO Dale Redman have settled expenses that they understated his executive benefits by failing to disclose ProPetro had reimbursed him for a lot more than $400,000 in particular and vacation costs.

According to the U.S. Securities and Exchange Fee, ProPetro did not incorporate the costs, including Redman’s use of his particular Learjet for excursions that were not directly related to the performance of his CEO duties, in its proxy statements for fiscal 2017 and 2018.

As a end result, the statements recognized only $ten,800 in benefits for 2017, rather of $153,370, and $19,248 for 2018, rather of $304,863, representing a complete understatement of $428,125, the SEC claimed in an administrative get.

Redman also allegedly unsuccessful to disclose to ProPetro personnel that he had pledged all of his stock in the corporation as collateral for a private true estate personal loan, resulting in inaccurate disclosures of his stock possession in general public filings.

The SEC’s administrative get did not point out the company’s CFO. Just after an audit committee investigation of a different matter, which did not end result in any monetary restatements, in the tumble of 2019 ProPetro named a new executive chair as properly as a new interim CFO, general counsel, and main accounting officer.

To settle the allegations about executive benefits, ProPetro and Redman agreed to cease-and-desist from further violations, and Redman agreed to pay out a $195,046 penalty.

“The federal securities regulations are crystal apparent: issuers ought to precisely disclose and history executive payment and stock possession. ProPetro unsuccessful in equally respects,” David Peavler, director of the SEC’s Fort Value regional office environment, claimed in a information release.

Redman served as CEO of ProPetro from August 2006 till his resignation in March 2020. He principally employed his Learjet for business enterprise vacation but according to the SEC, ProPetro reimbursed him $forty two,519 in 2017 and $117,279 for particular excursions.

The SEC claimed Redman omitted his particular excursions on the Learjet in the administrators & officers questionnaires he submitted to ProPetro.

Also, he allegedly unsuccessful to disclose that he and members of his relatives had employed ProPetro credit score cards to charge $127,698 of particular costs and ProPetro allegedly unsuccessful to correctly disclose $forty seven,591 in added benefits for Redman that were approved and paid out for directly by the corporation.

The poor disclosures of benefits came to light, the SEC claimed, just after ProPetro’s board initiated an internal investigation of a various matter. Redman reimbursed the corporation for $345,636 in August 2019.

Dale Redman, benefits, ProPetro, U.S. Securities and Exchange Fee