The former CEO of a controlled electric powered and natural gas general public utility in South Carolina is due to plead guilty today in federal court docket to conspiracy to commit mail and wire fraud.
Kevin B. Marsh is the ex-CEO of SCANA Company and former chairman of its board of directors. The Cayce-based company, which was the only Fortune 500 company in South Carolina, merged with Dominion Energy in January 2019 immediately after an incident acknowledged as the Nukegate scandal induced its stock price to tumble.
The scandal arose after the company and its subsidiary SCE&G allegedly defrauded investors by building fake and misleading statements about the Virgil C. Summer nuclear enlargement challenge.
Underneath the task, SCANA and SCE&G collectively invested $9bn into the construction of two nuclear reactors in Fairfield County from 2008 to 2017. Building commenced in 2013 but was ultimately abandoned after delays and glitches drove the price up to $25bn.
To fork out for the building, the organizations made use of a state legislation that allows utilities to increase consumers’ energy prices. Ratepayers continued to spend increased costs for the growth even with its termination.
In February 2020, the Securities and Trade Fee submitted a complaint alleging that SCANA, SCE&G, Kevin Marsh, and former govt vice president Stephen Byrne misled buyers by professing that the nuclear building task would qualify the business for much more than $1bn in tax credits when in fact the project was far driving plan and thus unlikely to qualify for the tax credits.
Without the need of admitting or denying the allegations, in December 2020 SCANA and SCE&G agreed to a permanent injunction and to pay back $112.5m in disgorgement in addition prejudgment fascination. SCANA also agreed to shell out a $25m penalty.
“Shareholders have been deceived by SCANA and robbed of thousands and thousands on hundreds of thousands of bucks,” claimed US Legal professional Peter McCoy. “I am hopeful that, together with the felony costs brought ahead by our workplace, this multimillion dollar civil high-quality and penalty demonstrates that no human being or corporation is previously mentioned the law.”
Byrne pled guilty in federal courtroom in July 2020 to conspiracy to dedicate mail and wire fraud beneath a plea agreement requiring him to cooperate with regulation enforcement officials.
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