WASHINGTON May 2 U.S. Senator Bill Nelson plans to ask the Justice Department to investigate Chesapeake Energy Corp for potential fraud and price manipulation, an aide to the lawmaker said.
Nelson's request comes after Reuters reported on Wednesday that Chesapeake CEO Aubrey McClendon ran a $200 million hedge fund that traded in the same commodities Chesapeake produces. A search of Chesapeake's filings turned up no disclosure of his activities.
"In response to the reporting by Reuters, Senator Bill Nelson has asked his staff to formally request that the Justice Department's Financial Fraud Enforcement Task Force investigate the Chesapeake Energy Corp. matter to determine whether there is evidence of fraud, price manipulation, conflicts-of-interest, or other illegal activities," said Ryan McCormick, a staff director for the Senate Finance subcommittee on fiscal responsibility.