Will current management still be running the company post-bankruptcy?
12 replies (most recent on top)
Who would cheerlead for the employees when the managers are gone?
Nobody will ever go to jail I’ve the collapse of this company. I am not saying they shouldn’t but it won’t happen. I bet not a single player is even charged or for that matter even relieved of their leadership positions.
Yes, sadly.
All 3 CHK witnesses, in the middle of their testimony, started rocking back and forth in their seats and chugging water. Their appearance was actually disturbing, so much so that the judge asked the witnesses if they needed a break and noted the rocking and chugging.
I wonder what the medical professionals would say?
Anyway here are the crimes identified so far:
Fraudulent debt swap;
Insider trading;
Adoption of poison pill to prevent other bidders;
Leaking the plan to the media as the stock rose to prevent an equity offering;
Unwinding the hedge and redoing it so Franklin makes a k–ling;
Shorting the common and preferred;
Lying under oath;
Intentionally Misleading shareholders;
Neglecting assets when estimating total asset value for the court;
Not seeking the best for stakeholders;
Fraud;
Breach of Fiduciary Duty;
Self enrichment;
To flesh in the details of the criminal activity, read the objections to the plan now on record.
The Chesapeake statements to the public and CHK employees that “make little sense” were all criminally fraudulent as far as I’m concerned.
There are 40 to 50 people at CHK, and they know who they are, that need at least 5- year prison terms. They hurt not only the investors but a large number of loyal Chesapeake employees.
Any fraud charged as the result of the bankruptcy will only be a very small portion of the fraud committed over the years.
Candidly, many CHK executives have been one-man crime waves their entire careers at CHK.
A lot of very good people got hurt and I hope someone pays.
What are the crimes that will put management in Jail?
Extensive Perjury and fraud, not only at the trial but in the pleadings and in prior statements having been signed. CHK is a publicly held corporation so nearly everything the c-suite signs is under penalty of perjury and nearly every statement they’ve made contains lies. Remember that half the truth when represented to be the whole truth—that’s a lie and if you do it under penalty of perjury, that’s a crime.
Theft.
Conspiracy to commit theft and fraud, using interstate communications.
Breach of fiduciary duty—Lawler and Del Osso turned the corporation over to Franklin.
The Unsecured Creditors Committee says Lawler, et al, recorded 1.5 billion in mortgages on Chesapeake assets related to the Wildhorse deal, gratuitously, to benefit certain favored lenders and defraud the Unsecured Creditors. Under the Wildhorse deal, the mortgages should not have burdened Chesapeake assets but only burden assets of the new company created to merge the Wildhorse assets into.
The UCC says Lawler could have voided 3.5 billion in secured debt as preferential transfers within 90 days of filing the bankruptcy under Bankruptcy Code section 363 and had a fiduciary duty to do so on behalf of CHK but intentionally filed after the 90 days had passed to benefit Franklin and cheat the unsecured creditors.
The UCC says that Lawler fraudulently devalued Chesapeake assets so Lawler can fraudulently pass CHK on to certain preferred creditors to the detriment of the unsecured creditors.
One way or the other many people think Lawler et al have cheated/stole more than 5 billion.
I’ve only looked at a small portion of the bankruptcy record. The bankruptcy pleadings contain hundreds of pages of conduct by Lawler, et al, that could be charged criminally.
What is the illegal activity that you think will end up with management in prison ?
There may not be much left going on post-bankruptcy.
Read the thread below, where someone describes the pathetic performance of your clownesque CEO in front of the judge.
Chapter 7 is coming, if you are lucky you will be re-hired by the bank for the interim necessary to flip the liquidated assets.
- 0% chance
Today, I read a review of John Steinbeck’s first novel “Cup of Gold” which stated: “Cup of Gold” is the masterly beginning of a great career. It’s a rollicking tale of pirates, conquest and political intrigue. It’s also a wonderfully readable and deeply insightful story of s-xual obsession and power, giving us a man who drags down thousands of lives in an effort to serve his own gratification.
I’ve been working with men like that at Chesapeake for 20 years. We’ve seen so many Cup of Gold men. It seems like we got Cup of Gold Men and those who wish they were Cup of Gold men. I’m tired of it.
Late in his life, George Eastman (Eastman/Kodak) nearly worked himself to death on behalf of the War Department during WW 2, living like a monk. At the end of the war, Eastman returned all of the profit he made during the war to the US Treasury.
Those men can’t be extinct. The men leading Chesapeake only provide evidence against Neanderthal Extinction Theory.
Only if there is a stipulation in their prison sentence allowing it.
Still?!?