Three former Consol Energy Inc. (CNX:US) executives were sued by the U.S. Securities and Exchange Commission for allegedly trading on inside information about the company’s 2010 acquisition of a Dominion Resources Inc. business.
Charles Mazur, 42, former director of corporate strategy, James Poland, 52, former general manager of engineering, and Joseph Cerenzia, 57, former director of public relations, were named as defendants in a complaint filed today in federal court in Pittsburgh alleging they bought or sold Consol shares (CNX:US) just days before the deal was made public.
Each man received documents or e-mails about Canonsburg, Pennsylvania-based Consol’s acquisition of Dominion’s Appalachian exploration and production business before the March 15, 2010, announcement, according to the SEC. Consol’s shares (CNX:US) dropped 10 percent that day.
Mazur made $47,355 trading in Consol options; Poland sold shares and avoided $9,552 in losses; and Cerenzia sold shares and avoided $7,518 in losses, the SEC alleged.
The agency is seeking unspecific civil fines and disgorgement of trading profits or losses.
Consol paid $3.48 billion for Richmond, Virginia-based Dominion’s gas exploration and production business in 2010 and spent an additional $963 million to buy the 17 percent of CNX Gas Corp. it didn’t already own.
G. Philip Rutledge, Mazur’s attorney, declined to comment on the lawsuit. Michael Healey, an attorney for Poland, and Paul Tershel, a lawyer for Cerenzia, didn’t immediately respond to voice-mail messages left after business hours seeking comment.
The case is SEC v Mazur, 12-731, U.S. District Court, Western District of Pennsylvania (Pittsburgh).
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