Kivisto Walks

[Teatownclown]

 

SEC Charges Former CEO in Tulsa With Misleading Investors About Liquidity Risks
FOR IMMEDIATE RELEASE
2011-212
Washington, D.C., Oct. 18, 2011 – The Securities and Exchange Commission today charged the co-founder of a Tulsa-based energy company with misleading investors in one of its subsidiaries about liquidity risks they faced from his energy trading.
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Additional Materials
•   http://www.sec.gov/litigation/complaints/2011/comp-pr2011-212.pdf

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According to the SEC's complaint filed in federal court in Tulsa, Thomas L. Kivisto was CEO and president of SemGroup L.P., which bought, transported and sold petroleum products and traded crude oil and related commodities and derivatives. Kivisto managed these trading activities. Meanwhile, Kivisto also was a director of SemGroup's subsidiary, SemGroup Energy Partners L.P. (SGLP), which owns midstream oil and gas assets such as pipelines and storage facilities. SGLP issues publicly-traded limited partnership units, and Kivisto signed certain corporate filings that SGLP made with the SEC, including registration statements and its annual report.
The SEC alleges that SGLP's filings assured investors that its revenue stream from SemGroup, which was its largest customer, was "stable and predictable" and protected from volatility in oil prices. However, unbeknownst to investors, Kivisto's energy trading was increasingly draining SemGroup's credit facilities and other liquidity sources and jeopardizing the company's ability to fulfill its commitments to SGLP. Investors were never warned of these risks, which came to a head in July 2008 when SemGroup's lenders cancelled the credit facility and the company filed for bankruptcy. The price of SGLP's limited partnership units subsequently declined more than 60 percent.
"Investors have a right to know the risks that could imperil their investment," said Robert Khuzami, Director of the SEC's Division of Enforcement. "Kivisto should have known that the SGLP filings he signed did not warn investors about the risks created by his energy trading, and investors were blindsided when those risks came to fruition."
The SEC alleges that Kivisto should have known that certain SGLP public filings that he signed were misleading investors about the reliability of SGLP's revenue stream and the risks that SGLP faced from Kivisto's energy trading. SemGroup provided up to 89 percent of SGLP's revenues and thus was critical to SGLP's profitability. SGLP is now known as Blueknight Energy Partners L.P.
Kivisto agreed to settle the SEC's charges without admitting or denying the allegations by paying a $225,000 penalty and forfeiting his rights to SGLP limited partnership units currently worth more than $1.1 million that were awarded to him under SGLP's long-term incentive plan. He also consented to entry of a final judgment permanently enjoining him from violating the antifraud provisions of the Securities Act of 1933.
The SEC's investigation was conducted by David Peavler, Robert Hannan, Keith Hunter, and David King in the SEC's Fort Worth Regional Office. The SEC acknowledges the assistance of the U.S. Attorney's Office for the Northern District of Oklahoma and the U.S. Commodity Futures Trading Commission (CFTC).
# # #
For more information about this enforcement action, contact:
David Woodcock, Regional Director
David Peavler, Assistant Director
SEC's Fort Worth Regional Office
(817) 978-3821

[carltonplace]

Why is this pertinent to New Developments?

[BKDotCom]

Why is this pertinent to New Developments?

¿Developing news?

[Breadburner]

When you're stoned all the time like the OP is you really don't know where to put anything.....

[Teatownclown]

When you're stoned all the time like the OP is you really don't know where to put anything.....

It's been an ongoing development until yesterday when this thief with a fountain pen got off.....and the nerds here wonder what the %99 movement is all about.

[Conan71]

So the degenerate gambler finally walks.  Anyone know if this is the last of any criminal or civil probes he's facing?  Amazing with how much damage he did, yet he essentially gets off lighter than someone who sticks up a convenience store for $20.

[Teatownclown]

So the degenerate gambler finally walks.  Anyone know if this is the last of any criminal or civil probes he's facing?  Amazing with how much damage he did, yet he essentially gets off lighter than someone who sticks up a convenience store for $20.

+1 We have a bingo. 

[heironymouspasparagus]

So the degenerate gambler finally walks.  Anyone know if this is the last of any criminal or civil probes he's facing?  Amazing with how much damage he did, yet he essentially gets off lighter than someone who sticks up a convenience store for $20.

Just another fallout of the de-regulatory orgy of the 80's.  The one allowing all these energy trading adventures.  Just like Enron.  And Devon and Williams Brothers trading.

[Townsend]

Houston Company Begins Hostile Takeover Attempt Of Tulsa's SemGroup

http://www.newson6.com/story/15861008/hostile-takeover-attempt-underway-against-tulsas-semgroup?utm_source=dlvr.it&utm_medium=twitter

TULSA, Oklahoma -- A Houston pipeline company is attempting a hostile takeover of Tulsa's SemGroup Corporation.

The Wall Street Journal is reporting Plains All American Pipeline LP is seeking to spend $1 billion on SemGroup's outstanding shares.

Read news release from Plains All American Pipeline LP.

The WSJ says PAA has made an offer to buy SemGroup, with the latest offer being rejected earlier this month.

"We are disappointed that SemGroup's Board of Directors has refused to engage in constructive discussions with us regarding a possible transaction," said Greg L. Armstrong, PAA's Chairman and Chief Executive Officer.

"Since SemGroup's emergence from bankruptcy in November 2009, its assets and businesses have consistently and materially under-performed the projections in its Plan of Reorganization. We believe that the attractive and certain value we are proposing to deliver to SemGroup's stockholders is greater than any value that might be created on a reasonable timetable from any of SemGroup's other strategic alternatives, including the value attributable to a successful completion of SemGroup's proposed initial public offering of its newly-formed master limited partnership, Rose Rock Midstream, L.P., and its announced transaction with NGL Energy Partners, the expected value of which are already reflected in SemGroup's stock price. Notably, our proposal incorporates and offers to SemGroup's stockholders benefits from cost savings and synergies that we believe PAA is uniquely positioned to realize upon consummation of the proposed transaction."

The WSJ says PAA controls about 16,000 miles of crude oil and refined fuel pipelines stretching from western Canada to West Texas and the Gulf of Mexico.

SemGroup operates 2,400 miles of crude oil, natural gas, refined fuels and natural gas liquids pipelines stretching from Canada to South Texas and Mexico.

[heironymouspasparagus]

Houston Company Begins Hostile Takeover Attempt Of Tulsa's SemGroup

http://www.newson6.com/story/15861008/hostile-takeover-attempt-underway-against-tulsas-semgroup?utm_source=dlvr.it&utm_medium=twitter

At today's price of $27.55, it is worth quite a bit more than $1 billion -   $ 1.15 billion.