December 2, 2020

Energy company SCANA Corp. has agreed to pay a $25 million penalty to settle SEC charges of defrauding investors.  SCANA and its subsidiary, South Carolina Electric & Gas Co. (SCE&G), have also agreed to pay $112.5 million in disgorgement.  According to the SEC, SCANA, SCE&G, and top executives Kevin Marsh (former CEO) and Stephen Byrne (former executive VP) defrauded investors by making false and misleading statements concerning a nuclear power plant expansion that they said would qualify the company for more than $1 billion in tax credits.  However, defendants knew the project was far behind schedule and likely to be scrapped.  The false statements led investors to buy more than $1 billion in bonds, and caused millions of dollars in losses when the project was ultimately scrapped in mid-2017.  DOJ; SEC

Tagged in: Financial and Investment Fraud, Misrepresentations,