Authorities say former CEO embezzled company funds

By Don Mecoy

Published: August 29, 2008

Authorities today accused former Quest Resource Corp. chief executive officer Jerry Cash of moving millions of dollars of company funds into an account he controlled to use for personal expenses.

Cash several years ago moved Quest money to an account he controlled, according to a petition filed today in Oklahoma County District Court by the state Securities Department.

Since at least 2005, Cash each quarter wrote checks to Quest ranging from $400,000 to $10 million from his account, the petition says. The day after the end of each fiscal quarter, Cash would wire Quest funds back into his account to cover the checks he had written, the petition says.

Public corporations must provide a financial accounting every three months.

Cash agreed to allow the securities department to freeze his assets, the agency said.

Oklahoma Securities Administrator Irving Faught said Cash used the funds for his personal benefit.

“This action was filed in order to put a stop to the defendant’s fraudulent activity and to prohibit future violations of the securities laws of this state,” Faught said in a statement.

Cash last week resigned as chairman and chief executive officer of Quest Resource Corp., Quest Energy Partners LP and Quest Midstream Partners LP after the company learned of the Securities Department’s investigation into Cash’s activities.