Ohio AG to probe Chesapeake allegations

Ohio Attorney General Mike DeWine is looking into allegations of fraud involving Chesapeake Energy Corp. that might have caused state pension funds to lose money, the Columbus Dispatch reports.

DeWine is responding to concerns raised by an environmental advocacy group that has compared Chesapeake to Enron.

“My office is reviewing the retirement system trading data in order to calculate possible losses attributable to the alleged fraud,” DeWine wrote in a letter to the group. “Please be assured that we will monitor the situation and take appropriate action if it appears that Ohio resources have been lost due to fraudulent activity.”

Ohio Citizen Action is devoted to preventing pollution.

The group, which boasts 80,000 members, earlier this month urged the attorney general to protect Ohio residents from Chesapeake’s possible collapse due to unaccountable management and the absence of effective state or federal regulation.

The allegations echo more than a dozen lawsuits filed by Chesapeake shareholders over the past two months amid reports of corporate governance issues at the Oklahoma City-based oil and natural gas producer.