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ProPetro, U.S. SEC settle charges on ex-CEO’s undisclosed perks – Metro US

ProPetro, U.S. SEC settle charges on ex-CEO’s undisclosed perks

A general view of an equipment yard of ProPetro in
A general view of an equipment yard of ProPetro in Midland, Texas

(Reuters) – The U.S. Securities and Exchange Commission said on Monday Texas-based oilfield services company ProPetro Holding Corp and its founder and former CEO Dale Redman have agreed to settle charges for failing to properly disclose some of Redman’s executive perks and two stock pledges.

The SEC’s order said Redman charged ProPetro $380,594 worth of personal and travel expenses unrelated to the performance of his duties as CEO and failed to disclose stock pledges for two private real estate transactions, the regulator said in a statement.

Redman resigned from ProPetro last year less than three weeks after Reuters sent company executives a letter seeking comments for an investigation into the stock pledges and other aspects of his financial affairs.

The investigation by the SEC found that between January 2017 and December 2018, Redman and his family members used corporate credit cards for roughly $127,698 in undocumented and personal expenses. The company also incurred $252,896 in charges related to Redman’s personal use of an aircraft.

Redman has agreed to pay a $195,046 as part of the settlement. He is currently listed as a manger on a company called Commander Downhole Technologies, which was formed on Aug. 27, 2021, according to a Texas business filing.

ProPetro on Monday issued a statement saying it had entered into a settlement with the SEC and that it was not required to pay any monetary penalty.

Toby Galloway, attorney for Dale Redman, said his client cooperated with the investigation and was happy to have it resolved.

(Additional reporting by Kanishka Singh and Chris Prentice; Editing by Mark Porter and David Gregorio)

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