Securities and Exchange Commission (SEC) officials have detailed a settlement agreement the agency has established with oilfield services company ProPetro Holding Corp. and its founder and former CEO Dale Redman.
The SEC indicated the agreement stems from charges alleging the parties failed to disclose some of Redman’s executive perks and two stock pledges.
Per the SEC’s order, Redman caused ProPetro to incur $380,594 worth of personal and travel expenses unrelated to the performance of his duties as CEO, and he failed to inform company personnel he had pledged all of his ProPetro stock in two private real estate transactions.
Additionally, the SEC maintained ProPetro did not properly disclose $47,591 in additional, authorized perks it paid to Redman.
The SEC concluded ProPetro issued public filings containing material misstatements with regard to executive perks and stock ownership while also failing to record Redman’s perks in its record-keeping.
“The federal securities laws are crystal clear: issuers must accurately disclose and record executive compensation and stock ownership,” David Peavler, director of the SEC’s Fort Worth Regional Office, said. “ProPetro failed in both respects.”
ProPetro and Redman did not admit or deny the SEC’s findings, the agency indicated, and ProPetro and Redman agreed to cease and desist from further violations while Redman agreed to pay a $195,046 penalty.
ProPetro remedial efforts include hiring a new management team with public company experience; hiring additional finance department personnel; establishing new directors; and forming new controls, policies, and procedures with regard to perks.