Chesapeake Energy Corporation (NYSE:CHK) company has named a new full time legal counsellor, as they attemp to recuperate from accusations of wrongdoing regarding lease deals in Michigan, as well as Aubrey McClendon’s personal loan scandal.
James Webb, an attorney who has been employed by Chesapeake Energy Corporation (NYSE:CHK) as a contract attorney for four months, has been named as the company’s new legal counsel, according to the chicago Tribune. Chesapeake is the nations second largest producer of oil and natural gas products, and the recent suits and accusations have left it struggling to recover its losses.
Henry Hood was the former legal counsel for Chesapeake Energy Corporation (NYSE:CHK), and had been so for more than 6 years. Hood will remain emplyed by the company, as the senior vice president of land and legal.
Reuters told us in June that Chesapeake Energy Corporation (NYSE:CHK) was guilty of colluding with one of its competitors, Encana Corp, to avoid bidding against each other in Michigan land deals back in 2010. This began a long investigation, deep into Chesapeake’s dealings, by the U.S. DOJ, and opened the possibility of criminal antitrust violations by the oil giant.
The personal loans of Aubrey McClendon, mentioned above, are also part of the scrutinizing investigations. According to reports, McClendon borrowed nearly $1.1 billion over the last three years, and used his stake in Chesapeake’s stock as collateral for the loans. The legal counsel, Henry hood at the time, claimed that McClendon had no conflict of interest in taking these loans, however, many shareholders felt otherwise.
Webb will be a strong fit into Chesapeake’s legal plans, as he has 17 years of experience at the McAfee & Taft law forim of Oklahoma City. It will be interesting to see if he take a new tact from Henry Hood’s previous methods, in order to defend Chesapeake from these new accusations of wrongdoing.
