Brooge Energy Shares Fall After SEC Fine
23 December 2023 - 2:38AM
Dow Jones News
By Dean Seal
Shares of Brooge Energy tumbled after federal regulators fined
the company for allegedly inflating its revenues in documents for a
$500 million stock sale.
The stock was down 21% at $3.11 in recent trading. Shares have
fallen 42% year-to-date.
The U.S. Securities and Exchange Commission said Friday morning
that the United Arab Emirates-based energy company gave auditors
false invoices that inflated revenue from its oil facilities in
Fujairah, the main oil-storage hub of U.A.E., by more than $70
million between 2018 and early 2021.
The agency claims former Chief Executive Nicolaas Lammert
Paardenkooper and former interim-CEO Lina Saheb knew of the fraud
or were reckless in not knowing of it.
Without admitting or denying the findings, Brooge has agreed to
pay a $5 million penalty while Paardenkooper and Saheb will each
pay $100,000 fines to settle the claims.
Brooge agreed during the course of the SEC's investigation not
to follow through with the $500 million stock sale at issue. In
April, the company restated its financial statements from 2018
through 2020.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
December 22, 2023 10:23 ET (15:23 GMT)
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