Chesapeake CEO cleared of intentional wrongdoing

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Associated Press

Posted on February 20, 2013 at 11:01 AM

Updated Wednesday, Feb 20 at 11:02 AM

NEW YORK (AP) — An investigation by Chesapeake Energy Corp.'s board of directors into outgoing CEO Aubrey McClendon's personal financing deals with company partners has found the deals did not benefit McClendon improperly or cost the company more.

The company said Wednesday that "no intentional misconduct by Mr. McClendon or any of the company's management was found."

McClendon founded Chesapeake in 1989. He had a special arrangement with the company that allowed him to invest personally in the oil and gas wells the company drilled. As the company expanded and oil and gas prices fluctuated, McClendon needed to borrow money to pay for his stakes in the wells and he used those stakes as collateral to do so.

Last month Chesapeake announced McClendon would leave the company April 1 amid philosophical differences.

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