Chesapeake Energy (NYSE:CHK) Loses $4.3 Million After Being Cheated By A Vendor

Chesapeake Energy (NYSE:CHK) has moved to court to sue the president of a well servicing company who it alleges cheated it to get away with about $4.3 million. Justin Lane Foust, 41, has dismissed the claims terming them baseless and without merit. But it goes without saying that the charges leveled against him are quite severe.

He is being charged with two counts of aggravated identity theft, eight counts of wire fraud and a single count of laundering.

It was back in 2011 when Foust proceeded to start a company in Canute that went by the name Platinum Express LLC. The prosecutors disclosed that at the moment he lived in Sulphur.

This is not the first time that such an incident is happening at Chesapeake. A few years back there was also another official that managed to get away with quite a significant amount of money. The company had moved to court expecting for justice to be served. Things did not move according to plan after the judge ruled in favor of the official asserting that quite minimal was presented in form of evidence. Efforts to appeal were also frustrated by the court of appeal.

Chesapeake hasn’t yet lost its trust to the rule of law and that is the reason it resolved to move to court yet again. One of the top officials working for it has exuded great confidence saying that this time around the ruling will be made in their favor. However, that is something that we will just have to wait and see.

If found guilty Foust will be in great trouble considering that the penalty for laundering and aggravated identity theft are extreme. People close to him but who spoke from the standpoint of anonymity have said that the official seems confident of a win in court. They added that he had in numerous instances vindicated himself asserting that he was innocent.

The technological advancements sweeping across the world in the current times are important for businesses. However, there are some people that are using it to execute theft and destruction of properties. It has been revealed that Foust is good with technology but that shouldn’t be used as the basis to condemn him.

Scott Sally

Scott Sally

Sally joined the US Markets Daily News Team in April 2011 as a Multimedia Journalist.